Tax Free Car - Maths Idiot

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

Welcome to the Army Rumour Service, ARRSE

The UK's largest and busiest UNofficial military website.

The heart of the site is the forum area, including:

  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.

    S_R
     
  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.

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