VAT (Leaving Cert Mathematics): Revision Notes
📚 Revision Notes
VAT
VAT (Value-Added Tax) is a type of indirect tax imposed on the consumption of goods and services at every stage of production or distribution where value is added. It is ultimately borne by the end consumer.
Example
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A bicycle costs €215.65 including VAT at 13.5%. Find the original cost of the bicycle before VAT was added.
In total 113.5% was paid, 100% for the bicycle and 13.5% VAT added on. Let's find 1% of the total cost and then multiply by 100 to get the cost of the bicycle only.
Example
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A pair of shoes cost €48 (with VAT included). Without VAT, the cost would have been €40. Find the VAT rate that was charged on the shoes.
Rate of VAT :