Business Math Assignment

1 (3)
HAAGA-HELIA University of Applied Sciences
Thao Vy Le 1.3.2011

Value Added Tax

1.
a. Price excluding VAT: 355e – 100%
VAT – 23%
 Price including VAT (123%): 355 x 1.23
= 436.65 (euros)
b. VAT – 9% - x(euros)
Price including VAT (109%) – 53e
 Amount of VAT in the price: x = 53 x
0.09/1.09 = 4.38 (euros)
c. VAT – 2.21 e – 13%
Price excluding VAT (100%): 2.21 x 1/0.13 = 17 (euros)
Price including VAT: 17 + 2.21 = 19.21 (euros)
2.
a. VAT – 23%
Price including VAT – 172.20 euros – 123%
 Price excluding VAT (100%): 172.2/1.23
= 140 euros
b. VAT – 13% - 3.45 euros
 Price including VAT (113%): 3.45 x
1.13/0.13 = 29.99 euros
3.
a. Spain: 116% - 1700e
Finland: 123% - x e
 x = 1700*1.23/1.16 = 1802.6 e
b. Selling price in Finland more expensive than in
Spain :
(1802,6 – 1700)/1700 = 0.06 = 6%
4. Before – 122%
After – 113%
 Price changed: (1.13 – 1.22)/1.22 = -
0.074= - 7.4%
 Prices in restaurants decrease 7.4%
5. June 2010 – 122% - 15.90 euros
The price excluding VAT: 15.90/1.22 = 13.03 euros

In July 2010 – VAT 23%

New price excluding VAT: 13.03 x 1.05 = 13.68 euros
Price including VAT: 13.68 x 1.23 = 16.83 euros

6. From the price including VAT, VAT takes up: 0.23/1.23

= 0.1870 = 18.70%
7. Assume that in the beginning tax free price – 100
euros
Before – VAT 6%
After – VAT 8%
Business Math Assignment
2 (3)
HAAGA-HELIA University of Applied Sciences
Thao Vy Le 1.3.2011

a. Tax-free price didn’t change, price including tax:

Before – 106 euros
After – 108 euros
 Price including tax changed: (108-106)/106 =
1.89%
b. Tax-free price increased 15%
Before – Price including tax – 106 euros
After – Tax-free price 115 euros – VAT 8% - Price including tax – 115 x
1.08 = 124.2 euros
 Price including tax changed: (124.2-106)/106 =
17.17%
c. Tax-free price decreased 10%
Before – price including tax – 106 euros
After – Tax-free price 90 euros – Price including tax – 90 x 1.08 = 97.2
euros
 Price including tax changed: (97.2 – 106)/106 =
- 8.3%
 Price decrease 8.3%
8. Assume that the free-tax price before is x (euros)
Before – price including tax (122%) is 1.22x (euros)
After – price including tax ( 108%) is 1.22x * 0.97 = 1.1834x (euros)
=> free-tax price is: 1.1834x/1.08 = 1.0957 x (euros)

 Hairdresser earnings increased: (1.0957x – x)/x

= 9.57%
Business Math Assignment
3 (3)
HAAGA-HELIA University of Applied Sciences
Thao Vy Le 1.3.2011

This is where you can end!