by jappy Contributor
Contributor

EE Perk question

Hi,

 

I'm due to upgrade soon and will be using my EE perk 20% discount. I'm looking at the iPhone XR 64gb at a cost of £63 per month.

 

I'm trying to work out how much I'll be paying with the discount. Am I right that I have to deduct VAT first then deduct the 20% Discount and re-ad VAT?

1 SOLUTION

Accepted Solutions
by Profile closed
Not applicable
Solution

Re: EE Perk question

@jappy Yes you are right. So you'll pay £48.38 per month. £48.384 to be precise. 

 

That's £63 - 20% -  20% + 20%. 

4 REPLIES 4
by Profile closed
Not applicable

Re: EE Perk question

@jappy if you get your 20% discount then you will pay the £63 less 20%. So, £63 - £12.60 = £50.40. VAT is coincidentally 20%. 

by jappy Contributor
Contributor

Re: EE Perk question

Yes, but VAT is 20% of the final cost, so surely that needs to be removed first to know what the base price is.

by Profile closed
Not applicable
Solution

Re: EE Perk question

@jappy Yes you are right. So you'll pay £48.38 per month. £48.384 to be precise. 

 

That's £63 - 20% -  20% + 20%. 

Highlighted
by Grand Master
Grand Master

Re: EE Perk question

VAT is not 20% of final cost; it is 20% of price before VAT is added.

 

So your calculation is way out as well as being long-winded. You don't need to go around subtracting & adding VAT. Multiplication is cumulative!

 

The price with the discount is simply £63 - 20% = £50.40.

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