Question

In Germany, VAT is at 19%

Jeremy buys a calculator in Germany for €58.31
This price includes VAT.

Find the amount of VAT paid by Jeremy

Answer 1

Amount of VAT paid by Jeremy is € 9.31 .

Explanation:

As given

In Germany, VAT is at 19% .

Jeremy buys a calculator in Germany for €58.31

This price includes VAT.

Let us assume that the cost of calculator excluding tax is x .

19% is written in the decimal form .

`= (19)/(100)`

= 0.19

VAT Price = 0.19 × Cost price of calculator excluding VAT

= 0.19 × x

= 0.19x

Than

Cost of calaculator + VAT price = Cost of calculator including VAT

x + 0.19 × x = 58.31

x + 0.19x = 58.31

1.19x = 58.31

`x = (58.31)/(1.19)`

x = €49 (Approx)

Thus cost price of calculator excluding VAT is €49 .

VAT Price = 0.19 × Cost price of calculator excluding VAT

= 0.19 × 49

= € 9.31

Therefore the amount of VAT paid by Jeremy is € 9.31 .