VAT 20%

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RosieFitz
RosieFitz Registered Posts: 7
in Chat and off-topic discussion
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???

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  • JSchof28
    JSchof28 Registered Posts: 2
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    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
    RosieFitz Registered Posts: 7
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    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
    JSchof28 Registered Posts: 2
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    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 :(

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