Indirect Tax- Practise Assessment 2- Help!

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Alfiedodee
Alfiedodee Registered Posts: 16 Dedicated contributor 🦉
in AAT Level 3 (Level 6 in Scotland)
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!

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  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,368
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    Reduced rate is at 5% - not 20%.
    So 622.45*(100-3)/100 x 5% = 30.18

    :001_smile:
  • Alfiedodee
    Alfiedodee Registered Posts: 16 Dedicated contributor 🦉
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    ahhhh thats what i have missed.doh! thank you so much!!

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

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