Is there a difference between discount and VAT calculations?
$begingroup$
When I remove VAT I divide by 1.x
e.g. VAT @ 20%
£1 /1.2 =£0.83
But if want to remove a % discount do I use the same method as above, or the method below?
20% £1 * 20/100 = £0.20
£1 - £0.20 = £0.80
percentages
asked Apr 17 '15 at 8:52
ScottScott
112
$endgroup$
add a comment |
$begingroup$
When I remove VAT I divide by 1.x
e.g. VAT @ 20%
£1 /1.2 =£0.83
But if want to remove a % discount do I use the same method as above, or the method below?
20% £1 * 20/100 = £0.20
£1 - £0.20 = £0.80
percentages
asked Apr 17 '15 at 8:52
ScottScott
112
$endgroup$
$begingroup$
The second one, for £0.80.
$endgroup$
– TonyK
Apr 17 '15 at 8:57
add a comment |
$begingroup$
When I remove VAT I divide by 1.x
e.g. VAT @ 20%
£1 /1.2 =£0.83
But if want to remove a % discount do I use the same method as above, or the method below?
20% £1 * 20/100 = £0.20
£1 - £0.20 = £0.80
percentages
asked Apr 17 '15 at 8:52
ScottScott
112
$endgroup$
When I remove VAT I divide by 1.x
e.g. VAT @ 20%
£1 /1.2 =£0.83
But if want to remove a % discount do I use the same method as above, or the method below?
20% £1 * 20/100 = £0.20
£1 - £0.20 = £0.80
percentages
percentages
asked Apr 17 '15 at 8:52
ScottScott
112
asked Apr 17 '15 at 8:52
ScottScott
112
asked Apr 17 '15 at 8:52
ScottScott
112
asked Apr 17 '15 at 8:52
ScottScott
112
asked Apr 17 '15 at 8:52
ScottScott
112
112
$begingroup$
The second one, for £0.80.
$endgroup$
– TonyK
Apr 17 '15 at 8:57
add a comment |
$begingroup$
The second one, for £0.80.
$endgroup$
– TonyK
Apr 17 '15 at 8:57
$begingroup$
The second one, for £0.80.
$endgroup$
– TonyK
Apr 17 '15 at 8:57
$begingroup$
The second one, for £0.80.
$endgroup$
– TonyK
Apr 17 '15 at 8:57
add a comment |
3 Answers
3
active
oldest
votes
$begingroup$
Consider the following situation. You have an item that costs 100$ before VAT. Let's imagine the VAT is 20%. Then the list price will be $100$cdot 1.20 = 120$$. Then that item is put on a 20% sale. The sticker price will then be $120$ cdot 0.80 = 96$$. The difference is that the VAT is added while the discount is subtracted.
To emphasize, the VAT is added to a base price while discount is substracted from the total price.
answered Jul 16 '15 at 11:38
MadSaxMadSax
925
$endgroup$
add a comment |
$begingroup$
So, if the VAT-included price is $$x$ with a vat of $y%$ then you can relate $x rightarrow (100 + y)%$ and hence get $1 % rightarrow frac{$x}{(100+y)%}$ so that your non-VAT-included price is $$frac{$x}{(y+100)%} times 100$$
For example, in your case where $y = 20$ and $x=$1$, then the non-vat price is $$frac{1}{120%} times 100 = frac{1}{1.2} times 100 approx $0.83.$$
answered Jul 16 '15 at 11:39
Zain PatelZain Patel
15.7k51949
$endgroup$
add a comment |
$begingroup$
You remove VAT from the price VAT inclusive. Hence $timesdfrac1{100 %+20%}$.
But you remove the discount from the undiscounted price. Hence $times(100 %-20%$).
answered Jan 27 '18 at 13:59
Yves DaoustYves Daoust
128k674226
$endgroup$
add a comment |
Your Answer
StackExchange.ifUsing("editor", function () {
return StackExchange.using("mathjaxEditing", function () {
StackExchange.MarkdownEditor.creationCallbacks.add(function (editor, postfix) {
StackExchange.mathjaxEditing.prepareWmdForMathJax(editor, postfix, [["$", "$"], ["\\(","\\)"]]);
});
});
}, "mathjax-editing");
StackExchange.ready(function() {
var channelOptions = {
tags: "".split(" "),
id: "69"
};
initTagRenderer("".split(" "), "".split(" "), channelOptions);
StackExchange.using("externalEditor", function() {
// Have to fire editor after snippets, if snippets enabled
if (StackExchange.settings.snippets.snippetsEnabled) {
StackExchange.using("snippets", function() {
createEditor();
});
}
else {
createEditor();
}
});
function createEditor() {
StackExchange.prepareEditor({
heartbeatType: 'answer',
autoActivateHeartbeat: false,
convertImagesToLinks: true,
noModals: true,
showLowRepImageUploadWarning: true,
reputationToPostImages: 10,
bindNavPrevention: true,
postfix: "",
imageUploader: {
brandingHtml: "Powered by u003ca class="icon-imgur-white" href="https://imgur.com/"u003eu003c/au003e",
contentPolicyHtml: "User contributions licensed under u003ca href="https://creativecommons.org/licenses/by-sa/3.0/"u003ecc by-sa 3.0 with attribution requiredu003c/au003e u003ca href="https://stackoverflow.com/legal/content-policy"u003e(content policy)u003c/au003e",
allowUrls: true
},
noCode: true, onDemand: true,
discardSelector: ".discard-answer"
,immediatelyShowMarkdownHelp:true
});
}
});
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function () {
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmath.stackexchange.com%2fquestions%2f1238748%2fis-there-a-difference-between-discount-and-vat-calculations%23new-answer', 'question_page');
}
);
Post as a guest
Required, but never shown
3 Answers
3
active
oldest
votes
3 Answers
3
active
oldest
votes
active
oldest
votes
active
oldest
votes
$begingroup$
Consider the following situation. You have an item that costs 100$ before VAT. Let's imagine the VAT is 20%. Then the list price will be $100$cdot 1.20 = 120$$. Then that item is put on a 20% sale. The sticker price will then be $120$ cdot 0.80 = 96$$. The difference is that the VAT is added while the discount is subtracted.
To emphasize, the VAT is added to a base price while discount is substracted from the total price.
answered Jul 16 '15 at 11:38
MadSaxMadSax
925
$endgroup$
add a comment |
$begingroup$
Consider the following situation. You have an item that costs 100$ before VAT. Let's imagine the VAT is 20%. Then the list price will be $100$cdot 1.20 = 120$$. Then that item is put on a 20% sale. The sticker price will then be $120$ cdot 0.80 = 96$$. The difference is that the VAT is added while the discount is subtracted.
To emphasize, the VAT is added to a base price while discount is substracted from the total price.
answered Jul 16 '15 at 11:38
MadSaxMadSax
925
$endgroup$
add a comment |
$begingroup$
Consider the following situation. You have an item that costs 100$ before VAT. Let's imagine the VAT is 20%. Then the list price will be $100$cdot 1.20 = 120$$. Then that item is put on a 20% sale. The sticker price will then be $120$ cdot 0.80 = 96$$. The difference is that the VAT is added while the discount is subtracted.
To emphasize, the VAT is added to a base price while discount is substracted from the total price.
answered Jul 16 '15 at 11:38
MadSaxMadSax
925
$endgroup$
Consider the following situation. You have an item that costs 100$ before VAT. Let's imagine the VAT is 20%. Then the list price will be $100$cdot 1.20 = 120$$. Then that item is put on a 20% sale. The sticker price will then be $120$ cdot 0.80 = 96$$. The difference is that the VAT is added while the discount is subtracted.
To emphasize, the VAT is added to a base price while discount is substracted from the total price.
answered Jul 16 '15 at 11:38
MadSaxMadSax
925
answered Jul 16 '15 at 11:38
MadSaxMadSax
925
answered Jul 16 '15 at 11:38
MadSaxMadSax
925
answered Jul 16 '15 at 11:38
MadSaxMadSax
925
925
add a comment |
add a comment |
$begingroup$
So, if the VAT-included price is $$x$ with a vat of $y%$ then you can relate $x rightarrow (100 + y)%$ and hence get $1 % rightarrow frac{$x}{(100+y)%}$ so that your non-VAT-included price is $$frac{$x}{(y+100)%} times 100$$
For example, in your case where $y = 20$ and $x=$1$, then the non-vat price is $$frac{1}{120%} times 100 = frac{1}{1.2} times 100 approx $0.83.$$
answered Jul 16 '15 at 11:39
Zain PatelZain Patel
15.7k51949
$endgroup$
add a comment |
$begingroup$
So, if the VAT-included price is $$x$ with a vat of $y%$ then you can relate $x rightarrow (100 + y)%$ and hence get $1 % rightarrow frac{$x}{(100+y)%}$ so that your non-VAT-included price is $$frac{$x}{(y+100)%} times 100$$
For example, in your case where $y = 20$ and $x=$1$, then the non-vat price is $$frac{1}{120%} times 100 = frac{1}{1.2} times 100 approx $0.83.$$
answered Jul 16 '15 at 11:39
Zain PatelZain Patel
15.7k51949
$endgroup$
add a comment |
$begingroup$
So, if the VAT-included price is $$x$ with a vat of $y%$ then you can relate $x rightarrow (100 + y)%$ and hence get $1 % rightarrow frac{$x}{(100+y)%}$ so that your non-VAT-included price is $$frac{$x}{(y+100)%} times 100$$
For example, in your case where $y = 20$ and $x=$1$, then the non-vat price is $$frac{1}{120%} times 100 = frac{1}{1.2} times 100 approx $0.83.$$
answered Jul 16 '15 at 11:39
Zain PatelZain Patel
15.7k51949
$endgroup$
So, if the VAT-included price is $$x$ with a vat of $y%$ then you can relate $x rightarrow (100 + y)%$ and hence get $1 % rightarrow frac{$x}{(100+y)%}$ so that your non-VAT-included price is $$frac{$x}{(y+100)%} times 100$$
For example, in your case where $y = 20$ and $x=$1$, then the non-vat price is $$frac{1}{120%} times 100 = frac{1}{1.2} times 100 approx $0.83.$$
answered Jul 16 '15 at 11:39
Zain PatelZain Patel
15.7k51949
answered Jul 16 '15 at 11:39
Zain PatelZain Patel
15.7k51949
answered Jul 16 '15 at 11:39
Zain PatelZain Patel
15.7k51949
answered Jul 16 '15 at 11:39
Zain PatelZain Patel
15.7k51949
15.7k51949
add a comment |
add a comment |
$begingroup$
You remove VAT from the price VAT inclusive. Hence $timesdfrac1{100 %+20%}$.
But you remove the discount from the undiscounted price. Hence $times(100 %-20%$).
answered Jan 27 '18 at 13:59
Yves DaoustYves Daoust
128k674226
$endgroup$
add a comment |
$begingroup$
You remove VAT from the price VAT inclusive. Hence $timesdfrac1{100 %+20%}$.
But you remove the discount from the undiscounted price. Hence $times(100 %-20%$).
answered Jan 27 '18 at 13:59
Yves DaoustYves Daoust
128k674226
$endgroup$
add a comment |
$begingroup$
You remove VAT from the price VAT inclusive. Hence $timesdfrac1{100 %+20%}$.
But you remove the discount from the undiscounted price. Hence $times(100 %-20%$).
answered Jan 27 '18 at 13:59
Yves DaoustYves Daoust
128k674226
$endgroup$
You remove VAT from the price VAT inclusive. Hence $timesdfrac1{100 %+20%}$.
But you remove the discount from the undiscounted price. Hence $times(100 %-20%$).
answered Jan 27 '18 at 13:59
Yves DaoustYves Daoust
128k674226
answered Jan 27 '18 at 13:59
Yves DaoustYves Daoust
128k674226
answered Jan 27 '18 at 13:59
Yves DaoustYves Daoust
128k674226
answered Jan 27 '18 at 13:59
Yves DaoustYves Daoust
128k674226
128k674226
add a comment |
add a comment |
Thanks for contributing an answer to Mathematics Stack Exchange!
- Please be sure to answer the question. Provide details and share your research!
But avoid …
- Asking for help, clarification, or responding to other answers.
- Making statements based on opinion; back them up with references or personal experience.
Use MathJax to format equations. MathJax reference.
To learn more, see our tips on writing great answers.
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function () {
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmath.stackexchange.com%2fquestions%2f1238748%2fis-there-a-difference-between-discount-and-vat-calculations%23new-answer', 'question_page');
}
);
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
$begingroup$
The second one, for £0.80.
$endgroup$
– TonyK
Apr 17 '15 at 8:57