Excel 2007 : vat

[ean]

hi studying level 2 excel 2007, pre test. i just want to know why adding VAT @17.5% is 117.5 and not 17.5..? i notice that 17.5% puts the value, as where you put 117.5% adds it to the total

[Richard Buttrey]

I think you may be confusing your terminology. If you want to know what the VAT is then you multiply by 17.5% (or by 0.175 if you don't use the %)
If you want to add VAT to the net amount and see the gross total then you multiply by 117.5% (or 1.175 if the % isn't used) since you want both the net and the vat.

Basic maths really. Or if you're reading this across the pond where you speak a foreign language - math!

[zbor]

Let say your price is X and VAT is 17.5%

That means that on your price X you need to add X*17.5

X + X*17.5%
X(1+17.5%)
X*117.5% (since 1 is 100%)
X*1.175 (where 117.5% is 117.5/100)

[ean]

thank you, just with takeing in m/s/o 2007, was a bit confused by the 100, it seems clearer
ian