Indirect Tax- Practise Assessment 2- Help!

Alfiedodee

Hi

can anyone help explain the answer for the following:
A business makes a taxable supply at a reduced rate. The net value for the supply is £622.45 and a settlement discount of 3% is offered.

The answer the aat give is £30.18.

my answer is 622.45-3%/100*20= 120.75

helppppp!

MarieNoelle

Reduced rate is at 5% - not 20%.
So 622.45*(100-3)/100 x 5% = 30.18

:001_smile:

Alfiedodee

ahhhh thats what i have missed.doh! thank you so much!!

defo need to look out for that sneaky qs in the exam