Everybody in south Africa pays tax in the form of VAT. This is a system where 14% tax is added to the price of goods and services rendered. Price are either VAT exclusive or VAT inclusive. • Prices that exclude VAT mean that 14% VAT must still be added. • Prices that include VAT mean that 14% VAT has already been added. 1. An I-pod shuttle costs R820,99. Calculate how much VAT you are paying on this item. 2. Determine the VAT inclusive price if a builder quotes R12 700 excluding VAT to build a boundary wall. 3. Calculate the VAT exclusive price on a plasma TV that costs R9899 VAT inclusive.
Everybody in south Africa pays tax in the form of VAT. This is a system where 14% tax is added to the price of goods and services rendered. Price are either VAT exclusive or VAT inclusive. • Prices that exclude VAT mean that 14% VAT must still be added. • Prices that include VAT mean that 14% VAT has already been added. 1. An I-pod shuttle costs R820,99. Calculate how much VAT you are paying on this item. 2. Determine the VAT inclusive price if a builder quotes R12 700 excluding VAT to build a boundary wall. 3. Calculate the VAT exclusive price on a plasma TV that costs R9899 VAT inclusive.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Everybody in south Africa pays tax in the form of VAT. This is a system where 14% tax is added to the
price of goods and services rendered.
Price are either VAT exclusive or VAT inclusive.
• Prices that exclude VAT mean that 14% VAT must still be added.
• Prices that include VAT mean that 14% VAT has already been added.
1. An I-pod shuttle costs R820,99. Calculate how much VAT you are paying on this item.
2. Determine the VAT inclusive price if a builder quotes R12 700 excluding VAT to build a boundary
wall.
3. Calculate the VAT exclusive price on a plasma TV that costs R9899 VAT inclusive.
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