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• # 55041
• Wed 09 Mar 2011 09:47 PM

The Practical Bookkeeping book uses a VAT rate of 17.5%. What rate is used in the exam ?
thanks

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• # 55045
• Wed 09 Mar 2011 11:17 PM

Hi Steve,

I believe it is 20%, but the rate is always stated in the exam.

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• # 55128
• Sat 12 Mar 2011 08:21 PM

The rate used in the exam they will inform you of this just before you take the exam at the centre,

Kind Regards

Paula Welsh 

• Hello all,
  
  i just noticed we have a forum, just poking around the members area.  My name is Paula welsh and I have been a member since 2005, starting with Associate member and now a full member

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• # 55231
• Wed 16 Mar 2011 09:01 PM

Dear All

I would appriciate if some one could explain me the question below.
If Cash received from private customers for work done was £5000.00
What was the amount of VAT included in the cash received? VAT rate is 17.5%
Does the 5000 is VAT inclluded or not?
Ashraf

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• # 55262
• Thu 17 Mar 2011 08:52 PM

If the £5000 was received as payment of a vat invoice, and the vat charged was 17.5%
then the vat element is calculated using the vat fraction 7/47.

So 5000 x 7/47 = 744.68

Steve

Edited at 16 Mar 2011 09:02 PM GMT”

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• # 55267
• Fri 18 Mar 2011 12:32 AM

Steve!     Ashraf has just been told off for not working this out himself and being cheeky to Mikee on one of the other topics.

You've just handed the answer on a plate - tut tut

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• # 55269
• Fri 18 Mar 2011 09:36 AM

To be fair to Ashraf I didn't feel he was so out of order, at least I have thick enough skin not to take offence. But re-reading his posts I'm not sure he was just asking how to calculate the VAT rate.

Stuart asked him to post the full question otherwise we can't really help.

Ashraf if the answer isn't £744.68, post the rest of the question - it could be that VAT wasn't due on all the cash receipts totalling £5000, but without seeing the details it is impossible to tell.

Mike

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