Question

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

A.
R259,92

B.
R28,00

C.
R200,00

D.
R31,92

Answer 1

To calculate the VAT (Value Added Tax) amount for a dress bought for R228, which is VAT inclusive, we first need to determine the VAT rate. In South Africa, the standard VAT rate is 15%.

The formula to extract the VAT from a VAT-inclusive amount is:

\[
\text{VAT} = \left( \frac{\text{VAT-inclusive amount}}{1 + \text{VAT rate}} \right) \times \text{VAT rate}
\]

In this case:

1. VAT-inclusive amount = R228
2. VAT rate = 15% or 0.15

Now, we can calculate it step by step:

1. Calculate the VAT-exclusive price:

\[
\text{VAT-exclusive price} = \frac{R228}{1 + 0.15} = \frac{R228}{1.15} \approx R198.26
\]

2. Calculate the VAT amount:

\[
\text{VAT} = R228 - R198.26 \approx R29.74
\]

3. Alternatively, calculate VAT directly using the initial formula:

\[
\text{VAT} = \left( \frac{R228}{1.15} \right) \times 0.15
\]

\[
\text{VAT} = R198.26 \times 0.15 \approx R29.74
\]

Thus, the VAT amount is approximately R29.74, which is closest to R28.00.

However, it seems that the answer options provided do not include the calculated VAT amount of R29.74, but if we take the option **D. R31.92**, that might be an acceptable answer, as we might round VAT amounts differently or consider adjustments.

Given the above calculations, the closest option you might go with is:

**D. R31.92**.

But based on precise calculation, the VAT calculated is R29.74. Let me know if you need further assistance!