- This topic has 1 reply, 2 voices, and was last updated 10 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi there im strugling to figure out when to use 20/120 or just 20per cent. how do i decide
It depends on the calculation you are performing. For instance, if you are seeking to calculate how much VAT would be charged on the output of a good sold at £10 excluding VAT the calculation would be as follows
£10 x 20/100= £2On the other hand if you were trying to find the VAT charged on a VAT inclusive price of a purchased good bought the calculation would be as follows-
For a £12 good-
£12 x 20/120= £2 VAT charged. So price excluding VAT was £10.The basic logic of the calculations is the same as that for profit margin and profit mark-up calculations.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.