Answer to Question #238301 in Accounting for Tenn

Question

Calculate VAT

goods are sold at R3690 calculate VAT

Answer 1

Solution:

The standard VAT rate for South Africa is 15$\%$ for goods and services.

The amount of R3690 is inclusive of 15$\%$ VAT.

Derive the gross amount:

115$\%$ = 3690

100$\%$ =?

= $\frac{100\% \times 3690}{115} = 3,208.70$

The gross amount of the goods exclusive of VAT = 3,208.70

VAT = Vat rate $\times$ Gross Amount = 15$\%\times$3,208.70 = 481.30

VAT of the goods  = 481.30