The VAT fraction of 7/47, is arrived at by converting the decimal fraction of 0.175/1.175 (see the post on Calculating the VAT) to the lowest whole numbers.
7/47 is only the VAT fraction for standard VAT at 17.5%
If VAT is at 5%, the VAT fraction would become 1/21 (which is just the whole number equivalent of the decimal fraction 0.05/1.05)
If all this sounds too much like school-room maths, don’t worry, just trust me!
Filed under: Bookkeeping, Small Business, Working for yourself, accounting
help !!!
What is the new fraction for VAT at 15%
The new VAT fraction is 3/23.