Percentages

[beachy]

How do I find out how much the VAT was on an item that cost �42.27

[dee5]

Divide �42.27 by 1.175 giving you �35.97 then take �35.97 away from �42.27
Giving the VAT Amount of �6.30

[beachy]

Many thanks

[Bird Legs]

I prefer: 42.27 x 14.89%. Same result but easier to do on a calculator.

[beachy]

Does that mean whatever the total was (including vat) This should always be divided by 14.89% to reach the vat figure.

[Hammer]

Did it cost �42.27 after VAT was deducted, or before. It makes a difference.

[beachy]

Before -

[Hammer]

To work it out on a calculator, either

a. (price) x 0.175 / 1.175
or
b. (price) x 0.1489

a is accurate, b is approximate but probably close enough.

[doughboi]

I would have done:
�42.27 / 100
x 17.5.

Just so you know :)

[Hammer]

Doughboi, that tells you what the VAT is if the price is excluding VAT. In this case the price is including VAT.

[beachy]

Yes that is what I originally did but realised that wasn't giving the correct answer

[Bev2007]

Erm.. you are all assuming it was 17.5% VAT - there are other rates of course.

What was it you bought beachy?

[beachy]

it was a book for work and as we are an educational department we don't usually pay vat. The invoice had arrived with the vat already included so therefore I had to work this outr before I could send the invoice for payment.

[Bev2007]

Hi beachy,

Its true that most but not all books are zero-rated. Some are standard (17.5%) rated.

You can get a full description of this that are and aren't from the VAT Guide (if you have a spare 3 hours) but what you should do is ask for a VAT receipt for the book you bought which will spell out the rate charged and amount, along with their VAT number.

Good luck, Bev

[beachy]

Thanks very much everyone for your help I feel like quite an authority on vat now

[fanman]

my accountant tells me this way

for 17.5%
divide your total by 47 the multiply by 7 so

42.27 / 47 x 7 = 6.29 is the vat that is included