Question

Ireland has a 23% VAT (value-added tax, similar to a sales tax). How much will the VAT be on a purchase of a €250 item?

Answer 1

Answer: The amount of VAT on a purchase of an item is $57.5.

Step-by-step explanation:

Since we have given that

Cost of item = $250

we need to find the amount of VAT.

Rate of VAT = 23%

So, amount of VAT would be

$\dfrac{23}{100}\times 250\\\\=0.23\times 250\\\\=\ 57.5$

Hence, The amount of VAT on a purchase of an item is $57.5.

Answer 2

€250 x 1.23 (123%) = €307.50

:)