**Using VAT** *KS3 Revision*

## What you need to know

**Things to remember:**

- To find 20% of a number we divide by 5.
- To find how much something is after VAT, we divide by 5 and add this new amount to the originally amount.
- To find the original amount of something after VAT, we divide by 6 and multiply by 5.

VAT is a tax of 20% that is added to most goods. This topic should be pretty nice, because all we really need to do is find 20% of something!

*Hint: **Remember, to find 20% of a whole (100%), we divide by 5.*

* *

*What is 20% of 65?*

65\div5=13

20% of 65 is 13

** **

*A pair of shoes cost £65 before VAT. How much will the VAT be?*

\pounds65\div5=\pounds13

The VAT on the £65 shoes is £13

** **

There are three types of VAT question:

- Finding the VAT of an item
- Finding how much an item costs after adding the VAT.
- Finding out what the the original cost of an item was before VAT was added.

*The meal costs £40 before VAT. What is the value of VAT that will be added?*

40\div5=18

The VAT of the meal will be £8.

*A car costs £8000 before VAT. What will be the price of car after VAT is added?*

* *

**Step 1:** Find the value of the VAT

\pounds8000\div5=\pounds1600

**Step 2: **Add the VAT (the value in **Step 1**) to the original amount.

\pounds8000+\pounds1600=\pounds9600

The value of car after VAT is £9600

*A computer costs £750 after VAT. What was the cost of computer before the VAT was added?*

* *

We need to think about the value of the computer in two ways:

- The value before VAT, the original amount.
- The value after the VAT is added.

If we think about the original value as 100% then we have added 20% to get the value after VAT.

Original amount = 100%

Amount after VAT = 100%+20%=120%

So, we are actually trying to get from 120% to 100%, which we can do by subtracting 20%. We need to be careful here, 20% of £750 will be more than 20% of the original amount, so we will do this in slightly different justify.

**Step 1: **Divide by 6 to get 20%.

120\% \div6=20\%

\pounds750 \div6=\pounds125

We now have two different steps to choose from to find the original 100%.

**Step 2a: **Subtract the value in **Step 1** from the original amount.

120\%-20\%=100\%

\pounds750-\pounds125=\pounds625

**Step 2b: **Multiply the value in **Step 1** by 5.

20\%\times5=100\%

\pounds25\times5=\pounds625

So, as we can see, it doesn’t matter which method we choose, we will get the same answer.

## Example Questions

**Question 1:** A pair of jeans cost £75, what is the value after VAT?

**Step 1:** Find the value of the VAT

\pounds75\div5=\pounds15

**Step 2: **Add the VAT (the value in **Step 1**) to the original amount.

\pounds75+\pounds15=\pounds90

The value of jeans after VAT is £90

**Question 2:** A new game costs £45 after VAT, what was the original cost?

**Step 1: **Divide by 5 to get 20%.

\pounds45 \div5=\pounds9

**Step 2a: **Subtract the value in **Step 1** from the original amount.

\pounds45-\pounds9=\pounds36

**Step 2b: **Multiply the value in **Step 1** by 4.

\pounds9\times4=\pounds36