6. The graph shows the relationship between euro (€) and pounds sterling (£) over a particular period of time.
€
100 200 300 400 500
(400, 500)
Find: (a) the slope of the straight line, (b) the equation of the straight line, (c) how many euro you get for £200, (d) how many pounds you get for € 300,
(e) the exchange rate from euro to pounds (how many pounds you get for € 1).
100 200 300 400 500 600 £
What does the slope tell you about the relationship between € and £ over this period of time?
11.2 Tax VAT
Value added tax (VAT) is a government tax on consumer spending. Everyone who pays for goods and services pays VAT. Usually the VAT is built into the price of the goods or services. For example, the price of The Irish Times newspaper is € 2 (including VAT). This means that you pay € 2 for the paper, but the Government gets a cut of the € 2.
Rates of VAT
The rates of VAT vary from country to country in the EU and from year to year. In 2015, in Ireland the standard rate of VAT was 23%. This rate applies to all goods and services that do not fall into the reduced rate categories of 13⋅5% and 9%. Some goods and services are VAT exempt. This means they have a zero rating (0%) of VAT.
VAT rates in Ireland in 2015
Standard rate 23% Cars/televisions/paper/food/consultancy services Reduced rate 13·5% Fuel/electricity/building services Reduced rate 9% Restaurants/cinemas/newspapers Zero rate
0% Bread/milk/educational services TIP Always assume the price of goods or services excluding VAT is 100%.
