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Calculate the VAT on a gift basket with specific items, assuming a 15% VAT rate.

Accounting

ScanSolve AI Answer

Step-by-step solution

5 steps

We will assume a standard VAT rate of 15%15\%.

1. Determine the price of each item excluding VAT.

To find the price excluding VAT, we divide the selling price by (1+VAT rate)(1 + \text{VAT rate}).

Price excluding VAT=Selling Price1.15\text{Price excluding VAT} = \frac{\text{Selling Price}}{1.15}
  • Bar-One:
R10.041.15=R8.7304...≈R8.73\frac{\text{R}10.04}{1.15} = \text{R}8.7304... \approx \boxed{\text{R}8.73}
  • Peppermint Crisp:
R8.701.15=R7.5652...≈R7.57\frac{\text{R}8.70}{1.15} = \text{R}7.5652... \approx \boxed{\text{R}7.57}
  • Kit Kat:
R20.661.15=R17.9652...≈R17.97\frac{\text{R}20.66}{1.15} = \text{R}17.9652... \approx \boxed{\text{R}17.97}
  • Cadbury 80 g chocolate slab:
R6.731.15=R5.8521...≈R5.85\frac{\text{R}6.73}{1.15} = \text{R}5.8521... \approx \boxed{\text{R}5.85}
  • Empty basket:
R29.991.15=R26.0782...≈R26.08\frac{\text{R}29.99}{1.15} = \text{R}26.0782... \approx \boxed{\text{R}26.08}

2. Determine the total cost price of a gift basket, excluding VAT.

  1. Sum the prices of all items excluding VAT (using more precise values before final rounding).

    Total price excluding VAT=R8.73043478+R7.56521739+R17.96521739+R5.85217391+R26.07826087\text{Total price excluding VAT} = \text{R}8.73043478 + \text{R}7.56521739 + \text{R}17.96521739 + \text{R}5.85217391 + \text{R}26.07826087 Total price excluding VAT=R66.19130434\text{Total price excluding VAT} = \text{R}66.19130434
  2. Round the total to two decimal places.

    Total price excluding VAT≈R66.19\text{Total price excluding VAT} \approx \boxed{\text{R}66.19}

    3. Determine the total amount of VAT on a gift basket.

  3. Calculate the total selling price (including VAT) of all items.

    Total selling price=R10.04+R8.70+R20.66+R6.73+R29.99\text{Total selling price} = \text{R}10.04 + \text{R}8.70 + \text{R}20.66 + \text{R}6.73 + \text{R}29.99 Total selling price=R76.12\text{Total selling price} = \text{R}76.12
  4. Subtract the total price excluding VAT from the total selling price.

    Total VAT=Total selling price−Total price excluding VAT\text{Total VAT} = \text{Total selling price} - \text{Total price excluding VAT} Total VAT=R76.12−R66.19130434\text{Total VAT} = \text{R}76.12 - \text{R}66.19130434 Total VAT=R9.92869566\text{Total VAT} = \text{R}9.92869566
  5. Round the total VAT to two decimal places.

    Total VAT≈R9.93\text{Total VAT} \approx \boxed{\text{R}9.93}
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