Paul Hill wrote:
Hi All,
I have South African clients. In South Africa VAT (sales tax) is 14%.
So to calculate the vat amount you could use:
vat = gross * 14 / 114
The South African Revenue Service is stating we can no longer use this.
Instead we must use exactly 0.12280 (14 / 114 rounded to 5 decimal places)
So:
vat = gross * 0.12280
Has anyone ever seen something like this before?
Well the figure they have given you isn't 14% it is 12.28%. There must
be another factor in the calculation to take it down to that.
I find using decimal fractions much easier, so for example when VAT here
was 17.5% to calculate you did
vat = gross * 0.175 or you could make it harder for yourself:
vat = gross * 17/100
If you have a figure and you just want to add the vat to it:
total = oldtotal * 1.175
Now we just use 1.2 for 20% vat.
So if they say just use 0.1228 then that's nice and easy to use :-)
Peter
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