Tuesday 28 Aug 2007

Calculating the VAT

If you are presented with receipts (usually for, but not limited to, the purpose of claiming expenses) and need to calculate the VAT (at 17.5%) element for a receipt for £18.80:

£18.80 divided by 1.175
then multiply the answer by 0.175
which gives you VAT of £2.80

OR mutliply £18.80 by 7/47 (which is commonly referred to as the VAT fraction)

Happy Accountant | Accounting, Bookkeeping, Small Business, Working for yourself

2 Responses to “Calculating the VAT”

  1. # The VAT Fraction « The Happy Accountant on 30 Aug 2007 at 8:05 pm

    [...] fraction of 7/47, is arrived at by converting the decimal fraction of 0.175/1.175 (see the post on Calculating the VAT) to the lowest whole [...]

  2. # The Happy Accountant » Blog Archive » The VAT Fraction on 04 Oct 2008 at 4:51 pm

    [...] fraction of 7/47, is arrived at by converting the decimal fraction of 0.175/1.175 (see the post on Calculating the VAT) to the lowest whole [...]

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