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The price of an item including VAT at $\\var{VAT}$% is $ £ \\var{dpformat(price,2)}$.

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What is the change in price if the VAT changes

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rebelmaths

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Price including VAT of $\\var{VAT}$% = $\\var{VATa}$%

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First get the price before VAT by $\\frac{\\var{price}}{\\var{VATa}} \\times 100 = £\\var{dpformat(price*100/VATa,2)}$

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Then, multiply by $\\frac{\\var{VATnewa}}{100}$  (alternatively multiply by $\\var{VATnewa/100}$)

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$ \\var{dpformat(price*100/VATa,2)} \\times \\frac{\\var{VATnewa}}{100} = £\\var{dpformat(anstwo,2)}$

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The price already includes VAT so it corresponds to 100% + $\\var{VAT}$%. We need the cost price, which corresponds to 100%. Then we can add the new VAT rate to the cost price.

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What is the new price if the VAT rate changes to $\\var{VATnew}$%?

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£[[0]]

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