Question

Suzan smith sold goods of R9 560, which were VAt inclusive, to her customers on 2 June 2021

Calculate the amount of the goods before vat

Answer 1

To calculate the amount of the goods before VAT, we need to reverse calculate the VAT amount and subtract it from the total amount.

Given:
Total selling price of goods including VAT = R9,560
VAT rate = 15%

Let X be the amount of the goods before VAT.

VAT amount = Total selling price * VAT rate
VAT amount = R9,560 * 15% = R1,434

Amount of the goods before VAT = Total selling price - VAT amount
Amount of the goods before VAT = R9,560 - R1,434 = R8,126

Therefore, the amount of the goods before VAT was R8,126.