\what is the formula to work out how much vat you have paid?
If I had paid a bill of £10.00 including vat what is the mutliplier/divider to work out how much was vat? and what was the net amount?. Does this make sense?. Andy
Answers:
net amount is £10 x 0.851
vat paid is £10 x 0.149
easy!
Divide whole amount by 117.5 then multiply by 100.
Enjoy.
Sorry that gives you amount minus VAT. But you get the picture.
edit: didn't read properly:
x = n - ( n / 1.175 )
where n is amount after VAT
Divide the vat inclusive figure by 1.175 to get the net amount. Subtract the net amount from the gross amount to get the VAT amount.
Take the VAT inclusive amount, divide by 117.5 and multiply by 100. E.g. you're right that taking 17.5% of the full amount doesn't give you the right answer - in this case, £11.75 divided by 117.5 give 0.1 (10p) , multiply that by 100 give you 10 (the £10 pre-vat amount).
For an approximate answer (e.g. if you're doing it in your head) the vat amount is approx 1/6th. Thus the vat on the total is approx 1/7th (e.g £60 + vat - say 1/6th, £10 += £70. Actual amount is £70.50. So the vat on something costing £70 - 1/7th, £10 , actually £10.50 but near enough for mental arithmetic purposes!)
If something costs £10.00 including V.A.T you multiply it by 7 and divided it by 47 and that will give you the V.A.T. amount. Pam
listen to Pam thats wot i use to workout my VAT
TOTAL AMOUNT X 7 DIVIDED BY 47
Easy..
If you want to work out the actual VAT it's
11.75 x 17.5 divided by 117.5 = 1.75
If you want to work out the Net amount (before VAT)
11.75 divided by 1.175 = 10.00
If you want to work out the VAT on an item
10.00 x 1.175 = 11.75
Hope this helps
The answers post by the user, for information only, UKQnA.com does not guarantee the right.