Lettronics Support

when i apply vat at 17.5 % it is calculating it incorrectly - for example if i sell an item for £5.99 it calculates the vat as being 0.89 when it should be £1.05 I have had to set it at 21.3% to get the Vat to show correctly .

Any ideas on how to put this right ?

No, that is correct...

If an item retails at £5.99 and has a 17.5% VAT rate, the VAT content is 89p

Or it's £5.10 exc VAT, £5.10 + 17.5% VAT (5.10 x 1.175) = £5.99

That said, awful long time since I did A Level Maths