how do i figure out the vat on something once it has been included?...?

Question

ie.....total price is £200 inc vat

i know for a fact that is is £170.21 and vat is £29.79 as i have just looked a bill from my garage....

but what is the formula to fig this out if the bill only read £200...

many thanks lee

Answer 1

vat is 17.5%

Answer 2

Generally speaking, multiply the total amount by 7 then divide by 47.

Be aware though that an increasing number of items have VAT charged on them at 5%, rather than 17.5% (and, of course, on some items you do not need to pay VAT at all.)

Also note that in some shops if you pay by credit or debit card, part of your payment (typically 2.5%) is regarded as a finance charge and therefore does not have VAT on it. In this case you would need to multiply the bill by 0.975 before doing your 7/47 calculation.

Answer 3

multiply by 7 then devide by 47 in the case of £200 pounds the vat is 29.787. if the last no. is over 5 round up ie. 29.79. if the last no. is below 5 round down

Answer 4

from customs and excise they say to find vat at 17.5% turn the amount into fractions7/47 . in other words devide by 47 and then times by 7. £200.00 devided by 47=4.255 multiply by 7=£29.78.5 so you would round the figure up as it is half a penny or more which gives you £29.79 vat (if less than half a penny round down.

Answer 5

Hi i work with claims for european money every day and use the following to work out the VAT:
£117.50 divided by 47 then that answer multiplied by 7. I know it seems weird but it works and the VAT in the example above would be £17.50

Answer 6

You should treat the final amount as 117.5%. So you divide the £200 by 117.5 and then multiply your answer by 17.5. This will give you your VAT amount. If you follow this fromula then it should be equivalent to £29.79

Answer 7

To work out how much Vat you are paying on something you need to find out what 17.5% equals to in money on your total bill.

To work out percentages you need to divide to total by 100 then multiply it by the % you want.

eg 10% off £50 50 divided by 100 = 0.5 multiplied by 10 = £5

So £200 divided by 100 = 2 multiplied by 17.5 = £35

I'm not sure why your vat is different to waht I have worked out. The only thing I can think of is that something that you have perchased you don't pay Vat on. I work in a Hotel and we don't pay Vat on some purchases such as Cleaning fliuds, Coffee & tea.

Answer 8

Divide the total by 117.5 then times the answer by 17.5. That figure is the amount of the total which was VAT.

Answer 9

Divide the total including vat by 1.175.
This will give you your pre tax price.

Hope this helps

Answer 10

In ur head: Divide total by 5. Answer is just under one fifth of the total.
By calculator: Multiply total by 0.175.

Answer 11

You need to know the tax rate. Then
vat = r*FV/(1 + r)

In your example, r is unknown, so
vat + r*vat = r*FV
vat = r*FV - r*vat
vat = r*(FV - vat)
r = vat/(FV - vat) = 29.79/170.21 ≈ 0.175 or 17.5%