An item costs R1 200 excluding VAT. VAT is charged at 15%. What is the price including VAT?
Answer and explanation
Correct answer: D. R1 380
- Step 1: VAT = 15% of R1 200 = R180.
- Step 2: Price including VAT = R1 200 + R180 = R1 380.
Answer
R1 380.
Why not the others: R1 020: VAT was subtracted instead of added. R1 215: 15 was added as rand instead of 15%. R1 218: the VAT rate was taken as 1,5%.
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