Question

Calculate VAT for a dress bought for R228, VAT inclusive.

A.
R200,00

B.
R259,92

C.
R31,92

D.
R28,00

Answer 1

To calculate VAT from a total price that includes VAT, we can use the following formula:

\[
\text{VAT} = \frac{\text{Total Price} - \text{Price Without VAT}}{1 + \text{VAT Rate}}
\]

Or more commonly, we can rearrange the formula to find the VAT:

\[
\text{Price Without VAT} = \frac{\text{Total Price}}{1 + \text{VAT Rate}}
\]
\[
\text{VAT} = \text{Total Price} - \text{Price Without VAT}
\]

Assuming the VAT rate is 15% (which is common in many places):

1. **Calculate Price Without VAT:**
\[
\text{Price Without VAT} = \frac{R228}{1 + 0.15} = \frac{R228}{1.15} \approx R198.26
\]

2. **Now calculate VAT:**
\[
\text{VAT} = R228 - R198.26 \approx R29.74
\]

However, if the question gives you options with R28.00, we should check if it is safe to round based on typical VAT calculations.

If the VAT rate specified is not clear, it is safe to use a VAT rate of 14% as the previous standard in South Africa, but with our value closer to a common rounding, we can summarize:

\[
\text{VAT} = \text{Total} \times \frac{\text{VAT rate}}{1 + \text{VAT rate}} = 228 \times \frac{0.15}{1.15} \approx R29.74
\]

But R28,00 is a close option.

Given all the options:

If you strictly use 15%, the closest correct VAT calculated is:

**Option D: R28,00.**