Tax Free Car - Maths Idiot

Discussion in 'The NAAFI Bar' started by phil37, Dec 13, 2010.

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  1. Have been quoted a price (with tax) for a Mitsubishi Colt with many extras from a german dealer - €10,500

    What is the tax free price at 19% off ?
  2. I had $9217, but I dropped out of school early
  3. Sympathetic_Reaction

    Sympathetic_Reaction LE Book Reviewer

    is the 10,500 the 100% price or the 119% price....i.e. is it the taxed value and you want to remove the tax which is 19% on top of the initial price?

    The answer will be different.

    It could be either - 8,505 or 8,823 depending on the answer above.

    re-reading your note i think it is likely to be the 8,823 value.

  4. Cost price = 100
    Tax - 19%
    Total = 119

    Now you come along with your "mergerstewer" form and take 19% off

    119 - 19% = (119-22.61) = 93.39. Oops. :)

    That is why it works out at 15% instead of 19.
  5. If €10,500 includes the tax then 0.81 x 10,500 = €8,505
  6. 8823.52, easy no? 10,500 /1.19. Assuming the 10,500 incl. 19% Deutsche MwSt.
  7. Sympathetic_Reaction

    Sympathetic_Reaction LE Book Reviewer

    I think you're taking the wrong approach - you are taking 81% of the total., but infact the toal is 119% of the original value as it has tax included, what you need to do is remove the 19% from the 119% to return to 100%, therefore divide by 119 and multiply by 100, which will then give you the value of thecar prior to 19% tax being added to the cost.

    Leaving 8,823 as the original cost of the car.

  8. Ah yes I see what I've done wrong :oops: €8,823 it is.
  9. Does it have to be a Mitsubishi Colt?