VAT

Right folks I'm a bit stuck on the VAT issue, yesterday I bought something from a wharehouse where you pay vat when you get to the till, how do I work the VAT out on a calculator, say for instance the product is £4.95 how do I work out on a calculator how much VAT is on top?

[Paul M]

VAT = price * 0.175

Total = price * 1.175

[danielf]

Standard rate is 17.5%, so the total price 1.175 times the pre-VAT price. I.E: 1.175 * £4.95 = £5.82. VAT itself is 0.175 times pre VAT price (£ 0.87).

Edit: wot he ^^ said

[handyman]

Originally Posted by Nidge

Right folks I'm a bit stuck on the VAT issue, yesterday I bought something from a wharehouse where you pay vat when you get to the till, how do I work the VAT out on a calculator, say for instance the product is £4.95 how do I work out on a calculator how much VAT is on top?

A simple way to work it out without a calculator is:

Goods cost £5.00. Take 10% (£0.50) half of that is 5% (£0.25) and half again rounded up to the nearest penny so 2.5% or (£0.13). Add that together = 17.5% or £0.88 vat to go on your £5.00.

Originally Posted by Paul M

VAT = price * 0.175

Total = price * 1.175

Don't understand that.

I'm using a calculator.

---------- Post added at 18:45 ---------- Previous post was at 18:39 ----------

Sorted it thanks I wasn't putting the ... in on the calculator. Cheers lads.

[handyman]

Som calculators will let you do 100 x 17.5% to get the correct answer yet other make you do 100 + 17.5% to get the answer.

Best way is to use the decimal version as this is the same regardless.

To add vat to something multiply it by 1.175.
i.e. If its on the shelf of your cash n carry at £100 the vat on top will take it to £117.5 (£100 x 1.175 = £117.5))

To find out how much vat is in the price already multiply it by 0.175.
i.e If its in ASDA at £117.5 then its £100 with £17.50 vat added. (£100 x 0.175 = £17.5 which is your vat part)

---------- Post added at 18:54 ---------- Previous post was at 18:49 ----------

Originally Posted by Nidge

Sorted it thanks I wasn't putting the ... in on the calculator. Cheers lads.

No problem , spent far too long rolling out purchase VAT and Finance rates from car deals and inserting Insurance VAT which is from only 5% so I'm handy with a calculator nowadays.

Originally Posted by handyman

Som calculators will let you do 100 x 17.5% to get the correct answer yet other make you do 100 + 17.5% to get the answer.

Best way is to use the decimal version as this is the same regardless.

To add vat to something multiply it by 1.175.
i.e. If its on the shelf of your cash n carry at £100 the vat on top will take it to £117.5 (£100 x 1.175 = £117.5))

To find out how much vat is in the price already multiply it by 0.175.
i.e If its in ASDA at £117.5 then its £100 with £17.50 vat added. (£100 x 0.175 = £17.5 which is your vat part)

---------- Post added at 18:54 ---------- Previous post was at 18:49 ----------



No problem , spent far too long rolling out purchase VAT and Finance rates from car deals and inserting Insurance VAT which is from only 5% so I'm handy with a calculator nowadays.

Good man cheers for the help.

---------- Post added at 22:08 ---------- Previous post was at 22:07 ----------

Originally Posted by handyman

Som calculators will let you do 100 x 17.5% to get the correct answer yet other make you do 100 + 17.5% to get the answer.

Best way is to use the decimal version as this is the same regardless.

To add vat to something multiply it by 1.175.
i.e. If its on the shelf of your cash n carry at £100 the vat on top will take it to £117.5 (£100 x 1.175 = £117.5))

To find out how much vat is in the price already multiply it by 0.175.
i.e If its in ASDA at £117.5 then its £100 with £17.50 vat added. (£100 x 0.175 = £17.5 which is your vat part)

---------- Post added at 18:54 ---------- Previous post was at 18:49 ----------



No problem , spent far too long rolling out purchase VAT and Finance rates from car deals and inserting Insurance VAT which is from only 5% so I'm handy with a calculator nowadays.

When I was trying to work it out I was getting £4 VAT on a £6 item without the decimal point..

[rocket-ronnie]

to find out what the vat is in a price try this bookkeepers trick.
get the end total figure say £117.50p we all know that the vat is £17.50p and it was £100 before the vat,
so try this £117.50 x 7 then / 47 = £17.50.

so just try it with your figures in post 3 £5.82 total x 7 then/ 47 = 87p
£5.82p - 87p = your net amount £4.95.

im sorry this tread was how to add vat on, but i just wanted to share a way of finding out to the vat amount and to take it off

[SMHarman]

7/47 is the fat fraction Lowest common denominators and all that.

So the x vat price is vat inclusive price x 40/47
To get the vat inclusive price take the exclusive price and x 47/40

Move to the US where sales tax (VAT) is always added at the checkout and varies from state to state and product to product and cities are allowed to add a city sales tax too.

VAT in NY state is 7%, NY city 8% (1% city tax) in NJ it is 7% and 3.5% and 0% on clothes (I think - no I give up). Just pay what the checkout calculates.