Paul Hill wrote:

> Hi All,

>

> I have South African clients. In South Africa VAT (sales tax) is 14%.

>

> So to calculate the vat amount you could use:

> vat = gross * 14 / 114

>

> The South African Revenue Service is stating we can no longer use this.

> Instead we must use exactly 0.12280 (14 / 114 rounded to 5 decimal places)

>

> So:

> vat = gross * 0.12280

>

> Has anyone ever seen something like this before?

>

>

Well the figure they have given you isn't 14% it is 12.28%. There must

be another factor in the calculation to take it down to that.

I find using decimal fractions much easier, so for example when VAT here

was 17.5% to calculate you did

vat = gross * 0.175 or you could make it harder for yourself:

vat = gross * 17/100

If you have a figure and you just want to add the vat to it:

total = oldtotal * 1.175

Now we just use 1.2 for 20% vat.

So if they say just use 0.1228 then that's nice and easy to use :-)

Peter

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