Question

Determine the VAT-inclusive price if a builder quotes RIZ 700 excluding VAT to build a boundary.

What is the VAT-inclusive price for building the boundary if the VAT rate is 15%?
a) RIZ 805
b) RIZ 700
c) RIZ 805 (rounded to the nearest RIZ)
d) RIZ 645

Answer 1

The VAT-inclusive price for building the boundary, when the VAT rate is 15%, is calculated by adding the VAT amount (15% of RIZ 700) to the original quoted price. The total comes to RIZ 805.

Step-by-step explanation:

To determine the VAT-inclusive price, you need to add the VAT to the original quoted price. The original quote is RIZ 700, and the VAT rate is 15%. To calculate the VAT amount, you multiply the original price by the VAT rate: RIZ 700 × 0.15 = RIZ 105.

Therefore, the VAT-inclusive price is the sum of the original quote and the VAT amount: RIZ 700 + RIZ 105 = RIZ 805.

The correct answer from the provided options is a) RIZ 805 (rounded to the nearest RIZ).