# LESSON3- CONSUMER MATH- VAT

## LEAD-IN

## INTRODUCTION

**Value added tax is a form of consumption tax, which is calculated by the price of a product.**

### Calculating the price, after VAT

**Since VAT is a percentage, the VAT must be inserted as a decimal number (e.g. 25% is inserted into the formula as 0,25.**

**Example**

**A product without vat, costs 400 euro's without VAT, what is the real price of the product in a shop with 25%vat.**

**400 + 25% x 400 = 400 + 0.25 x 400 = 400 + 100 = 500**

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**The total price of a product can be calculated with the formula**

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**Total price = price + VAT% x price**

### Calculating a products price, without VAT

**The price of a product without vat, can be calculated with the formula:**

## Calculating the VAT amount

**The vat amount can be calculated with the formula:**