2. Sales Tax is an additional charge on
products, goods, or commodities purchased.
3. Mr. and Mrs. Tan bought a car for ₱840,000
and paid 5% for the tax. How much did the car cost
with tax?
Step 1: Multiply the tax rate by the cost
5% × ₱840,000 = n
0.05 × ₱840,000 = ₱42,000 is the tax
Step 2: Add the original price and the tax
₱840,000 + ₱42,000 = ₱882,000
Complete Answer: The cost of car with tax is
₱882,000
4. The listed price of an air conditioning unit is ₱32,000. If
you get a price discount of 15% and pay 5% tax, how much will
you pay for the air conditioning unit?
Find net price first,
Discount = 15% × ₱32,000
= 0.15 × ₱32,000 = ₱4,800 amount of discount
Net price = ₱32,000 - ₱4,800 = ₱27,200
Tax = 5% × ₱27,200
= 0.05 × ₱27,200 = ₱1,360
Actual cost = ₱27,200 + ₱1,360 = ₱28,560
5. Value-added tax (VAT) – a form of indirect
tax on a good or commodity. It may or
may not be charged to the consumer. It is
set at 12% of the price of the good or
commodity.
Example: VAT Sales ₱200.00 - price
VAT 12.00%
price subj. to VAT ₱24.00
Final selling price ₱224.00
