The standard VAT rate of united kingdom (UK) is 20% for most goods and services, it increased from 17.5% on 4 January 2011. The Reduced value added tax rate of United UK is 5% for some goods and services like children’s car seats and home energy. Some services like for most food and children’s clothes needs to pay zero rated value added tax.
The standard VAT rate of united kingdom (UK) is 20% for most goods and services, it increased from 17.5% on 4 January 2011. The Reduced value added tax rate of United UK is 5% for some goods and services like children’s car seats and home energy. Some services like for most food and children’s clothes needs to pay zero rated value added tax.
Find the VAT price and net price in United Kingdom (GST % is 20) for an amount of 25000 £
Solution :
GST % = 20
Amount = 25000
Step 1 :
GST Price = (25000 * 20 ) / 100
= 5000 £
Step 2 :
Net Price = 25000 + 5000
= 30000 £
Hence the VAT Price is 5000 £ and Net Price is 30000 £
Solution :
GST % = 20
Amount = 25000
Step 1 :
GST Price = 25000 - (25000 * ( 100 / (100 + 20)))
= 25000 - (25000 * 0.83)
= 25000 - 20833.33
= 25000 - 20833.33
GST Price = 4166.67 £
Step 2 :
Net Price = 25000 - 4166.67
= 20833.33 £
Hence the VAT Price is 4166.67 £ and Net Price is 20833.33 £
