Quote:
Originally Posted by
hoit1981
20% of 60 is 12 no?
Yes, but that is not how you do the exclusive VAT calculation.
VAT is added to a price to get the VAT inclusive price.
VAT exclusive price (GBP50) + VAT (GBP10) = VAT inclusive price (GBP60)
This is all assuming VAT is 20%.
With your numbers you get (at 20% VAT):
VAT exclusive price (GBP48) + VAT (GBP9.6) = VAT inclusive price (GBP57.60)
The easiest way to do this calculation is: (VAT inclusive price) divided by (1 + VAT pecentage in hundredths), i.e, GBP 60/1.2 = GBP50