Home For AAT student members AQ 2013 AAT Level 2 (Level 5 in Scotland)

units 1 - 3 workbook

KayKay Just JoinedRegistered Posts: 2
hi everyone, just started course last week, first time on a forum - i working thro untis 1-3 workbook - but have checked on some work i have done and found the answers in the book to be incorrect - e.g. vat on 585.40 should be 102.44 but book says 99.37???!!!!
I think i will leave it for today - messing with my mind!!!

Comments

  • Claire321Claire321 Well-Known Registered Posts: 209
    Does the question say anything about a settlement discount for paying the invoice within a certain time?

    For example it looks like £585.40 if say there was a 3% discount for prompt payment:-
    £585.40 - 3% (£17.56) = £567.84
    VAT would them be 17.5% of £567.84 = £99.37

    Where a settlement discount is offered for prompt payment (within a specified time) the VAT is calculated on the net invoice amount after discount - even if the discount is NOT actually taken. Therefore where settlement discounts are offered a reduced rate of VAT is charged, dependant of the amount of discount offered.
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