VAT 20%

RosieFitz

Hi, this question has confused me ... or am i confusing myself?
Calculate the VAT at the standard rate (20%) to be added on to the net goods price of £26.60?

My answer would be that Vat = 4.44? and the Net therefore would be 22.16???

JSchof28

The net is exclusive of VAT it looks like your taking the £26.60 as the gross amount.

£26.60 x 20% = £5.32

VAT = £5.32.

RosieFitz

Thank you, i get so confused with remembering if something is inclusive or exclusive of vat as they have different calculations, right?
Any hints to help remember?

JSchof28

Yea the calculation is different for Net and Gross:
Net = x by 20%
Gross = x by 20 then divide by 120 to find the VAT amount. And you round down remember when working out the VAT, so on a calculator an answer of 10.978 would actually be 10.97 not 10.98.
No tips for remembering sorry