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VAT equations

steveJsteveJ Experienced MentorRegistered Posts: 694
Hello everyone.

Just wondering if anyones got any tips on remembering vat equations. Any easier ways ? Also any of the other variance etc equations. Any tips will be most helpful...
I leave it to you oh enlightened ones.

Cheers

Comments

  • Sonny_LSonny_L Well-Known Registered Posts: 201
    Just remember the net figure is always 100%, and the gross figure is 115% (or 117.5% depending whether the AAT are examining the new or old rate)

    So to deduce VAT from a net figure: VAT = net x 15%
    And to deduce VAT from a gross figure = (Gross /115) x 15

    Obviously if using the old rates change the 15 to 17.5 and the 115 to 117.5.
  • welshwizardwelshwizard Trusted Regular South WalesRegistered Posts: 465
    For VAT @ 17.5%:

    To work out the VAT on the net figure:

    net amount x 17.5/100

    To extract VAT from Gross figure:

    gross amount x 7/47

    To extract net amount from gross figure:

    gross amount x 40/47

    For VAT @ 15%:

    To work out VAT on the net figure:

    net amount x 15/100

    To extract VAT from the gross amount:

    gross amount x 3/23

    To extract net amount from gross figure:

    gross amount x 20/23
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