Learning IntentionLearning Intention Success CriteriaSuccess Criteria

1.1. Understand term VAT.Understand term VAT.1. Explain how to calculate price +VAT.

Also cost before VAT.

VATVAT

2.2. Solve VAT Problems by Solve VAT Problems by calculating percentages.calculating percentages.

Value added Tax

Why do we pay it ?

VAT means :

To pay for NHS, bin collection,School education etc……

17.5%

What is the current percentage rate of VAT

VAT Apr 21, 2023

Example 1

How much will I pay for the computer including VAT below ?

£1000 + VAT

10% 1000 ÷ 10 = £100 5% half of 10% = £ 502.5% half of 5% = £ 25

17.5% £175

Total cost is £1000 + £175 = £1175

VAT Apr 21, 2023

Example 2

Price of the Plasma TV is shown below is excluding VAT.What is the total price I have to pay.

£1300 (excluding VAT)

10% 1300 ÷ 10 = £130 5% half of 10% = £ 652.5% half of 5% = £ 32.50

17.5% £227.50

Total cost is £1300 + £227.50 = £1527.50

VAT Apr 21, 2023

Exercise 3.1, p63 Apr 21, 2023