In the United Kingdom, shops include the V.A.T (Value Added Tax) on the goods they sell so that the V.A.T amount is incurred by the purchaser of the goods. If the current normal rate of V.A.T in the United Kingdom is 15% on your selling price, solve the following questions
The original cost of a goods tagged for sale at £120 should have been?
Answer : A
Explanation:
The True Price should have been 120/1.15 = £104.35
The normal cost for a pair of trousers should have been £50.00 but because Mary trying to avoid V.A.T puts the price at?
Answer : D
Since she wants to avoid V.A.T, the V.A.T payment would be transferred to the buyer. Therefore the Cost = 1.15% of 50 = £57.50 .
What is the V.A.T amount if a product sold for £84.00.
Answer : B
Since the V.A.T is 15%. The V.A.T amount = 15% of 84.00 = £12.6
Charles sold a canerack for £90.00. What was the original price of the canerack before V.A.T was added.
Answer : C
To get the original price of Canerack, divide by the increase of 15% Original Price = £90.00/1.15 = £78.20 (C)
After adding his percentage profit on a Wine drink the value came to £72.00. How much would Frank put as the selling price of the wine drink.
Answer : E
The V.A.T is 15% Therefore, the Selling Price = 1.15 x 72= £82.80 (A)
