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NJ5 said:
Slimebeast said:
NJ5 said:

That's not how VAT works. VAT is applied on the price before tax.

Here's a VAT calculator:

http://www.nolanassociates.com/Tools/Calculators/VAT_Calculator

EDIT - why did you use 20% VAT in one example and 25% in another? What a mess you're creating here :P

 


Yes, sorry. But u started the confusion by bringing in division instead of multiplication lol.

That's because the division is the correct way to calculate it.

Find me a single VAT calculator or explanation which calculates the way you did.

 

Yes yes.

Do it all over with using 25% VAT and the correct way then.

I just presented it wrong (by starting with the gross/retail price), but the outcome was the same.

I think most Western European countries have 25% VAT.