VAT%

[Guest]

In 2014 the general VAT-rate in Japan rose from 5 % to 8 %. How much did the tax included price change if the tax-free price
a) stayed the same
b) went up 15 %
c) went down 10 %?

[Guest]

To calculate the change in the tax-included price when the general VAT rate in Japan increased from 5% to 8%, you can use the following formula:

Change in Tax-Included Price = Tax-Free Price * (New VAT Rate - Old VAT Rate)

Where:

Tax-Free Price is the initial price without VAT.
New VAT Rate is the increased VAT rate (8% in this case).
Old VAT Rate is the previous VAT rate (5% in this case).

a) If the tax-free price stayed the same:
Change in Tax-Included Price = Tax-Free Price * (8% - 5%)
Change in Tax-Included Price = Tax-Free Price * 3%

b) If the tax-free price went up by 15%:
Change in Tax-Included Price = (Tax-Free Price * 1.15) * (8% - 5%)
Change in Tax-Included Price = 1.15 * Tax-Free Price * 3%

c) If the tax-free price went down by 10%:
Change in Tax-Included Price = (Tax-Free Price * 0.9) * (8% - 5%)
Change in Tax-Included Price = 0.9 * Tax-Free Price * 3%

Now, you can calculate the changes in the tax-included price for each scenario:

a) Change in Tax-Included Price when tax-free price stayed the same:
Change in Tax-Included Price = Tax-Free Price * 3% = 0.03 * Tax-Free Price

b) Change in Tax-Included Price when tax-free price went up 15%:
Change in Tax-Included Price = 1.15 * Tax-Free Price * 3% = 0.0345 * Tax-Free Price

c) Change in Tax-Included Price when tax-free price went down 10%:
Change in Tax-Included Price = 0.9 * Tax-Free Price * 3% = 0.027 * Tax-Free Price

So, the changes in the tax-included price for each scenario are:
a) 3% increase
b) 3.45% increase
c) 2.7% increase (rounded to the nearest tenth)

These percentages represent the change in the final price after the VAT rate increase, depending on whether the tax-free price stayed the same, went up 15%, or went down 10%.