Question

Calculate the VAT amount that is included in the R93,57 monthly flat rate for the UNMETERED residential area

Answer 1

Answer: R12.20

Explanation:

VAT in South Africa is 15% so if the flat rate is R93.57, the VAT amount can be found by finding the pre-tax flat rate:

93.57 = x + 0.15x

1.15x = 93.57

x = 93.57/1.15

x = R81.37

VAT is 15% of R81.37:

= 15% * 81.37

= R12.20