VAT

Value Added Tax (VAT) is a tax added to goods and purchases.

The current rate of VAT is 20%.

20% is the same as one fifth so to calculate this we divide by 5.

I purchased goods for £450 before VAT.  What did I actually pay? (you can use a calculator to help with your answer but you must show your working.)

Working : £450 ÷ 5 = £90

Total Cost = £450 + £90 = £540

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