1. VAT Learning Intention Success Criteria
Explain how to calculate price +VAT.
Also cost before VAT.
Understand term VAT.
2. Solve VAT Problems by calculating percentages.

2. 17.5% VAT 26-Apr-17 VAT means : Value added Tax Why do we pay it ?
To pay for NHS, bin collection,
School education etc……
What is the current percentage rate of VAT
17.5%

3. VAT 26-Apr-17 Example 1 10%  1000 ÷ 10 = £100 £1000 + VAT
How much will I pay for the computer including VAT below ?
10%  1000 ÷ 10 = £100
£ VAT
5%  half of 10% = £ 50
2.5%  half of 5% = £ 25
17.5%
£175
Total cost is £ £175 = £1175

4. VAT
26-Apr-17
Example 2
Price of the Plasma TV is shown below is excluding VAT.
What is the total price I have to pay.
10%  1300 ÷ 10 = £130
£1300 (excluding VAT)
5%  half of 10% = £ 65
2.5%  half of 5% = £ 32.50
17.5%
£227.50
Total cost is £ £ = £

5. Exercise 3.1, p63
26-Apr-17