As the VAT is included in the price it would be:
100/1.175 = 85.1063829787234
or
price/(1+VAT) = VAT exclusive
which would be the same as US tax

i think the issue is more related to exclusion or inclusion of tax in the
final price. They are both percentages on top of the base price.

Regards
Scott

On 12/10/06, Chris Howe <[EMAIL PROTECTED]> wrote:

100/ (1-.175) = 121.21212121212121
% = 1/100

--- Andrew Sykes <[EMAIL PROTECTED]> wrote:

> Chris,
>
> I'm not sure I follow this...
> > VAT -> productPrice / (1-VAT) = final price
>
> productPrice = 100
> VAT = 17.5%
>
> 100 / (1-17.5) = -6.060606061 ???
>
> It should be...
> ( productPrice / 100 ) * ( 100 + VAT ) = final price
>
> Am I misunderstanding your comment?
> --
> Kind Regards
> Andrew Sykes <[EMAIL PROTECTED]>
> Sykes Development Ltd
> http://www.sykesdevelopment.com
>
>


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