2. Value Added Tax (VAT) – a form of indirect
tax on a good or commodity. It may
or may not be charged to the
consumer.
– set at 12% of the price of the
good or commodity.
3. Example: Actual Price: ₱4,500
VAT: ?
Selling Price: ?
To get the VAT:
₱4,500 × 0.12 = ₱540.00
To get the Selling Price:
₱4,500 + ₱540.00 = ₱5,040.00
VAT: ₱540.00 Selling price: ₱5,040.00
5. Example:
Actual Price: ?
VAT: ₱1,092.72
Selling Price: ₱10,198.72
To get the Actual Price,
₱10,198.72 ̶ ₱1,092.72 = ₱9,106.00
Actual Price: ₱9,106.00
6. Try:
Actual Price: ?
VAT: ₱1,506.00
Selling Price: ₱14,006.00
Solution:
₱14,006.00 ̶ ₱1,506.00 = ₱12,500.00
Actual Price: ₱12,500.00