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Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing Calculating VAT Using absolute cell referencing

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Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing What exactly is VAT? VAT is value added tax Most products we buy have VAT added to them VAT is calculated as a percentage of the product price – usually 17.5% Some products have a lower rate of VAT Some products, like food and books, do not have VAT added Businesses have to pay VAT to the Inland Revenue on all the products they sell

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Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing Step 1 – Add VAT percentage to a spreadsheet The first step is to enter the VAT percentage rate into your spreadsheet. This is usually 17.5%. On the table shown, it is in cell C17.

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Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing Step 2 – Calculate VAT on ticket price Now you need to type a formula into cell D4 to calculate the VAT on ticket price. The formula needs to always refer to cell C17. What type of cell reference would you use?

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Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing Now enter the formula in D4. Remember, you can click in the cells instead of typing the cell references. In the example opposite, what still needs to be added to the formula? Step 3 – Enter your formula

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Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing We need to add dollar signs to C17 to make it an absolute cell reference. Step 4 – Make a cell reference absolute C4 should stay as a relative cell reference. Can you see why?

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Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing Press Enter on your keyboard. The value for VAT on the price of a ticket will now show in cell D4. Step 5 – Press Enter!

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Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing Using the Fill Handle, copy the formula to cells D5 and D6. Step 6 – Copy the formula to other cells in a series

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Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing The new formulae should still refer to cell C17. Step 6 – Copy the formula to other cells in a series Using the Fill Handle, copy the formula to cells D5 and D6. C4 should have changed to C5 and C6.

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