Help please!
AM02
Registered Posts: 7 New contributor 🐸
in Indirect Tax
A business sells reduced rated goods to a customer for the VAT exclusive amount of £900 and offers a discount of 2.5% for payment within 10 days. The customer pays within these terms. What is the VAT on the sale to be declared to HMRC?. Enter value up to two decimal places.
The correct answer is £43.87 but icannot understand how this has been worked out. Can anyone help please?
The correct answer is £43.87 but icannot understand how this has been worked out. Can anyone help please?
0
Comments
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£900 - 2.5% = £877.50
£877.50 x 5% VAT = £43.870 -
Thank you. I missed the reduced rate percentage part in my calculations.0
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You're welcome0
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