Skip to main content

Quiz: Can you calculate VAT?

There are three rates of VAT. The rate to be charged by the business is predetermined based on the item that is being sold or the service being offered. The rates are:

  • Standard rate at 20% – this applies to the majority of goods and services
  • Reduced rate at 5% – gas and electricity used in the home for example
  • Zero rate at 0%  – includes books and newspapers, children’s clothing, public transport and food (excluding meals-in and takeaways).

Quiz: Can you calculate VAT?

You have sold two products. The net sales price for the first product is £375. The VAT will be charged at the reduced rate. What would the amount of VAT for this item be?

The sales price for the second product includes VAT charged at the standard rate. The total is £600. What would the amount of VAT for this item be?

Share this content

Register with Informi today:

  • Create your own personalised account and access exclusive resources
  • Receive the latest updates from Informi
  • Join in the discussion through the comments section

or