created by mr. lafferty maths dept vat st. andrew’s secondary s3 value added tax why do we pay it...

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Created by Mr. Lafferty Created by Mr. Lafferty Maths Dept Maths Dept VAT VAT St. Andrew’s Secondary S3 Value added Tax Why do we pay it ? VAT means : To pay for NHS, bin collection, School education etc…… 17.5 % What is the current percentage rate of VAT

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Page 1: Created by Mr. Lafferty Maths Dept VAT St. Andrew’s Secondary S3 Value added Tax Why do we pay it ? VAT means : To pay for NHS, bin collection, School

Created by Mr. LaffertyCreated by Mr. LaffertyMaths DeptMaths Dept

VATVATS

t. A

ndre

w’s

Seco

nd

ary

S3

Value added Tax

Why do we pay it ?

VAT means :

To pay for NHS, bin collection,School education etc……

17.5%

What is the current percentage rate of VAT

Page 2: Created by Mr. Lafferty Maths Dept VAT St. Andrew’s Secondary S3 Value added Tax Why do we pay it ? VAT means : To pay for NHS, bin collection, School

Created by Mr. LaffertyCreated by Mr. LaffertyMaths DeptMaths Dept

VAT – 17.5%VAT – 17.5%S

t. A

ndre

w’s

Seco

nd

ary

S3Value added Tax

Example 1Example 1

How much will I pay for the computer below ?How much will I pay for the computer below ?

VAT means :

£1000 + VAT

Step 1 : work out VAT percentage

17.5×1000 = 0.175×1000 = £175

100

Step 2 : Total to pay is

£1000 + £175 = £175

Page 3: Created by Mr. Lafferty Maths Dept VAT St. Andrew’s Secondary S3 Value added Tax Why do we pay it ? VAT means : To pay for NHS, bin collection, School

Created by Mr. LaffertyCreated by Mr. LaffertyMaths DeptMaths Dept

VAT – 17.5%VAT – 17.5%S

t. A

ndre

w’s

Seco

nd

ary

S3Value added Tax

Example 2Example 2

Price of the Plasma TV is shown below is excluding VAT.Price of the Plasma TV is shown below is excluding VAT.What is the total price I have to pay.What is the total price I have to pay.

VAT means :

Step 1 : work out VAT percentage17.5

×1500 = 0.175×1500 = £262.50100

Step 2 : Total to pay is

£1500 + 262.50 = £1762.50£1299 (excluding VAT)

Page 4: Created by Mr. Lafferty Maths Dept VAT St. Andrew’s Secondary S3 Value added Tax Why do we pay it ? VAT means : To pay for NHS, bin collection, School

Created by Mr. LaffertyCreated by Mr. LaffertyMaths DeptMaths Dept

St.

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w’s

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ary

S3

Your turnYour turnExercise 6Exercise 6Page 65Page 65

VAT – 17.5%VAT – 17.5%Value added TaxVAT means :