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What Is the VAT Fraction?

Updated February 21, 2017

Value Added Tax (VAT) is a sales tax in the United Kingdom. A VAT fraction can be used to calculate how much VAT is included in a total sales price.

Types

VAT is added to taxable goods and services at the time of sale. A VAT-exclusive price is the price of an item before VAT is added. A VAT-inclusive price is the total sales price of an item, including VAT.

Significance

If you want to figure out how much VAT you have paid on an item, or if you want to claim back the VAT you paid on an item, then you must figure out how much VAT you paid. The VAT fraction is one way to calculate the VAT paid.

VAT Fraction

In order to calculate the VAT paid, multiply the price of the item by the VAT fraction. The VAT fraction for the standard rate of VAT (17.5 per cent as of August 2010) is 7/47. For example, the VAT paid on an item costing £117.50 is £117.50 x (7/47) = £17.50.

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About the Author

Stephanie Ellen teaches mathematics and statistics at the university and college level. She coauthored a statistics textbook published by Houghton-Mifflin. She has been writing professionally since 2008. Ellen holds a Bachelor of Science in health science from State University New York, a master's degree in math education from Jacksonville University and a Master of Arts in creative writing from National University.