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Calculate the amount excluding VAT if the total including VAT is R9497.93 at a 15% VAT rate.

Accounting

ScanSolve AI Answer

Answer

R8 259.07\text{R}8\,259.07

Step-by-step solution

2 steps
  1. Identify the given VAT-inclusive amount and the VAT rate.

    The final total amount including VAT is R9 497.93.
    The standard VAT rate in South Africa is 15%15\%.

  2. Calculate the amount excluding VAT.

    To find the amount excluding VAT, divide the VAT-inclusive amount by (1+VAT rate)(1 + \text{VAT rate}).

    Amount excluding VAT=VAT-inclusive amount1+VAT rate\text{Amount excluding VAT} = \frac{\text{VAT-inclusive amount}}{1 + \text{VAT rate}} Amount excluding VAT=R9 497.931+0.15\text{Amount excluding VAT} = \frac{\text{R}9\,497.93}{1 + 0.15} Amount excluding VAT=R9 497.931.15\text{Amount excluding VAT} = \frac{\text{R}9\,497.93}{1.15} Amount excluding VAT=R8 259.07\text{Amount excluding VAT} = \text{R}8\,259.07

    The amount, excluding VAT, charged for sundries and consumables is R8 259.07.

    R8 259.07\text{R}8\,259.07
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