Question
The selling price excluding VAT is \( R \) 8,80 . What is the VAT amount on this tem? \( R \) What is the selling price including VAT? \( R \)
Ask by Peters Clark. in South Africa
Feb 24,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
VAT amount is R1.32, and the selling price including VAT is R10.12.
Solution
Assuming the VAT rate is 15% (the standard rate in many cases), you can calculate the VAT amount as follows:
VAT amount = 15% of R8.80
= 0.15 × 8.80
= R1.32
Then, the selling price including VAT is:
Selling price including VAT = Selling price excl. VAT + VAT amount
= R8.80 + R1.32
= R10.12
So the VAT amount is R1.32 and the selling price including VAT is R10.12.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution Bonus Knowledge
To calculate the VAT amount, you first need to know the VAT percentage in your country. Assuming a common VAT rate of 15% for calculations: VAT amount = \( R \) 8,80 × 0.15 = \( R \) 1,32. Now, to find the selling price including VAT, simply add the VAT amount to the selling price excluding VAT: Total selling price including VAT = \( R \) 8,80 + \( R \) 1,32 = \( R \) 10,12. Isn't it neat how taxes can add a little extra to the excitement of shopping?
