Calculating VAT
Using absolute cell referencing
Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing
What exactly is VAT?
• VAT is value added tax
• Most products we buy have VAT added to them
• VAT is calculated as a percentage of the product
price – usually 17.5%
• Some products have a lower rate of VAT
• Some products, like food and books, do not have VAT
added
• Businesses have to pay VAT to the Inland Revenue
on all the products they sell
Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing
Step 1 – Add VAT percentage to a spreadsheet
The first step is to enter
the VAT percentage rate
into your spreadsheet.
This is usually 17.5%.
On the table shown, it is
in cell C17.
Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing
Step 2 – Calculate VAT on ticket price
Now you need to type a
formula into cell D4 to
calculate the VAT on
ticket price.
The formula needs to
always refer to cell
C17. What type of cell
reference would you
use?
Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing
Step 3 – Enter your formula
Now enter the formula
in D4.
Remember, you can
click in the cells instead
of typing the cell
references.
In the example
opposite, what still
needs to be added to
the formula?
Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing
Step 4 – Make a cell reference absolute
We need to add dollar
signs to C17 to make
it an absolute cell
reference.
C4 should stay as a
relative cell reference.
Can you see why?
Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing
Step 5 – Press Enter!
Press Enter on your
keyboard. The value
for VAT on the price
of a ticket will now
show in cell D4.
Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing
Step 6 – Copy the formula to other cells in a series
Using the Fill Handle,
copy the formula to
cells D5 and D6.
Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing
Step 6 – Copy the formula to other cells in a series
Using the Fill Handle,
copy the formula to
cells D5 and D6.
The new formulae
should still refer to
cell C17.
C4 should have
changed to C5 and C6.
Unit 8.4_Lesson 3_CD Resource 3a_Calculating VAT using absolute cell referencing