Hmm I think freight cost needs to include VAT. so total cost will be (4650 + 2800) x 1.16 = 8642 yen.

To calculate the VAT on your shipment, add up the goods value, freight costs, insurance, import duty and any additional costs. Then multiply the total by the destination country's applicable VAT rate

From FedEx

Hello. Thank you for the comment. I have considered that freight should be charged VAT as well, but this is not mentioned in the question and so I made no such assumption.

Yes that's the tricky part I guess. That's why I always try to sum all the cost together then VAT. just GST. All the Cost then include service charge.. then finally include GST.

In real life situations, I am in all agreement with you. However in such a question, I tend to lean on what is specifically mentioned in the question unless there is an open question element in it. The freight cost mentioned may have already included the VAT, but I am not second guessing the question because I am not the person who set it.

Either way, I think it is up for debate. But I think the person who ask the question better ask the teacher. =] But don't get me wrong your approach is correct for the rest of the question.

No offense taken! I see where you are coming from. There are times when the setter of the question missed out on the details, or had wanted to simplify a question. It happens. To me this is just a discussion and not a debate because the onus lies with the setter. The way I look at it, the marking scheme probably allows two different solutions; one including VAT for the freight cost, the other not.