Aug 292007
In a similar way, if you want to calculate the net amount (the amount before VAT at 17.5% was added on) for a receipt for £18.80, you could do the previous calculation and then subtract: £18.80 – £2.80 = £16. But to do it in one step, more quickly, the calculation would be:
£18.80 divided by 1.175
which gives you the net amount of £16.
