This document explains how to use the IF function in Excel to calculate VAT based on product category, with different VAT rates applied depending on whether the product is electronic (4% VAT) or electrical (12.5% VAT). The IF function syntax allows you to specify an logical test (category in cell B2), a value if true (multiply price by 4%), and a value if false (multiply price by 12.5%). Quotes must be used for text but not for numbers. Practice is needed to properly use quotes, commas and brackets in the IF function syntax.

1. How to use the ‘IF’ function in Excelbyfamilycomputerclub.comhttp://www.familycomputerclub.com

2. Click inside the cell where you wish to enter your functionEnter ‘=‘http://www.familycomputerclub.com

3. 3. In our example we wish to calculate the amount of VAT based on theProduct category4. If the product belongs to the ‘electronic’category then we wish to calculate VAT at 4%5. If the product belongs to the ‘electrical’category then we wish to calculate VAT at 12.5%http://www.familycomputerclub.com

4. 6. We write the function as shown in the formulabar7. We interpret the writtenfunction as follows:If the value in the cell B2 is Electronic then we multiply the price with 4%else we multiply the pricewith12.5%.8. Since the category is‘Text’ we need to use quotes. For numbers wewrite as is i. e. without any quotes.http://www.familycomputerclub.com

5. http://www.familycomputerclub.com9. The syntax of the function isImportant10. You must use quotes, commas and brackets correctly 11. With a littlepractice this is quite easy.

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