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 education etc…… 17.5 % What is the current percentage rate of VAT

Created by Mr. Lafferty Maths Dept VAT – 17.5% St. Andrew’s Secondary S3 Value added Tax Example 1 How much will I pay for the computer below ? VAT means : £ VAT Step 1 : work out VAT percentage Step 2 : Total to pay is

Created by Mr. Lafferty Maths Dept VAT – 17.5% St. Andrew’s Secondary S3 Value added Tax Example 2 Price of the Plasma TV is shown below is excluding VAT. What is the total price I have to pay. VAT means : Step 1 : work out VAT percentage Step 2 : Total to pay is £1299 (excluding VAT)

Created by Mr. Lafferty Maths Dept St. Andrew’s Secondary S3 Your turn Exercise 6 Page 65 VAT – 17.5% Value added TaxVAT means :