An amount of R8 550 is VAT inclusive at 15%. What is the VAT portion from this amount? Select one:a.R1 282,50b.R1 050,00c.R7 500,00d.R1 197,00e.R1 115,22
Question
An amount of R8 550 is VAT inclusive at 15%. What is the VAT portion from this amount?
Select one:
- a. R1 282,50
- b. R1 050,00
- c. R7 500,00
- d. R1 197,00
- e. R1 115,22
Solution
To calculate the VAT portion from the total amount, you need to use the formula:
VAT = Total Amount / (1 + VAT rate)
Here, the total amount is R8 550 and the VAT rate is 15% or 0.15.
So,
VAT = R8 550 / (1 + 0.15) VAT = R8 550 / 1.15 VAT = R7 434.78
This is the amount before VAT was added. To find the VAT portion, subtract this amount from the total amount:
VAT Portion = Total Amount - Amount before VAT VAT Portion = R8 550 - R7 434.78 VAT Portion = R1 115.22
So, the VAT portion from the amount R8 550 at 15% VAT is R1 115.22. Therefore, the correct answer is e. R1 115,22.
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