Final answer:
The term 'sp' usually stands for the selling price, which always includes VAT at the prescribed rate since it represents the total cost to the consumer including the Value-Added Tax.
Step-by-step explanation:
When discussing VAT, 'sp' typically refers to the selling price of an item or service, which includes VAT at the applicable rate. VAT, or Value-Added Tax, is a type of consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The selling price with VAT is often mentioned because it represents the actual cost to the consumer. The formula to calculate VAT at a given percentage rate is (VAT rate/100) × (price without VAT), which then gets added to the original price to obtain the final selling price.