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Post by Tiago on Mar 11, 2020 15:35:58 GMT
Take into account BODMAS: Brackets, Operation, Division, Multiplication, Addition then Subtraction:
Net + VAT = Gross
However, VAT = 1/5 * Net because VAT at the moment is 20%. 1/5 = 20%. So you end up with the formula:
Net + 1/5*Net = Gross
And this is in fact, 6/5*Net = Gross. Let's say that Net=N, VAT=V and G=Gross. This means that: 6/5*N=G. This also means that 5/6*G=N. So we have Net in terms of Gross and Gross in terms of Net. Now if, 1/5*Net=VAT, then we can say that: 1/5*N=V. We can also say that: N=5V. So we have Net in terms of VAT and VAT in terms of Net. How about VAT in terms of Gross though, and Gross in terms of VAT? Well we know that 6/5*N=G. But N=5V. This means that: 6V=G and ultimately, V=G/6. So now you also have VAT in terms of Gross and Gross in terms of VAT. You put this into the matrix below, and you realise you have all the formulas related to Net, VAT and Gross. There are 6 formulas in total.
| Net | VAT | Gross | Net | X | Net vs VAT
| Net vs Gross
| VAT | VAT vs Net
| X | VAT vs Gross
| Gross | Gross vs Net
| Gross vs VAT
| X |
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