VAT

In the country XYZ car, Daewoo Leganza costs 5722 Euros including VAT; 4863.7 Eur without VAT.

a) Determine the rate of VAT.
b) How much Euro VAT is paid for the purchase?
c) How much percent of the total price of the goods is VAT?

VAT = value-added tax.

Final Answer:

a =  17.65 %
b =  858.3 Eur
c =  15 %

Step-by-step explanation:

$$\begin{gathered} x=5722\text{eur} \\ y=4863.7\text{eur} \\ a=100\cdot \frac{x-y}{y}=100\cdot \frac{5722-4863.7}{4863.7}=17.65\% \end{gathered}$$

$b=x-y=5722-4863.7=858.3\text{Eur}$

$c=100\cdot \frac{x-y}{x}=100\cdot \frac{5722-4863.7}{5722}=15\%$

Try another example