No, only the disounted amount is Vatable, the cash discount is not a vatable supply, therefore no VAT is payable on it.
There will be less vat.
Vat payable is the amount of vat collected on behalf of the tax authority and payable to them. In other words vat payable is an output vat levied on organisation's customers through the organisation's sales invoices for onward remittance to the tax authority subsequently.
debit bank accountcredit VAT payable
VAT payable is liability for business and shown in liability side of balance sheet of business.
debit Accounts receivablecredit sales revenueCredit VAT payable
VAT Control accounts are a nominal account used to track amounts of VAT payable and reclaimable by a business during its normal activities. For each purchase and sale an amount equal to the VAT due or receivable in respect of the transaction will be applied to the account. Reviewing the account balance will show the current total liability to HMRC, although that balance may be more than is actually payable if there is a VAT return due.
Divide the TOTAL by (1+the VAT rate) - this will give you the VAT exclusive price, then simply subtract that from the total price to get the VAT amount. For example...Say the retail price is 29.99 - Divide by 1.175 (current VAT rate)This gives 25.52 - subtract that from the original priceThus the VAT portion of the total price is 4.47
If you want to find out what the VAT portion is of a sum, you multiply it by .85106. So if you have £117.50 (ie £100 + VAT) you multiply £117.50 x .85106 and that will bring you back to £100....
Zero rated items usually relate to goods that are normally subject to Value Added Tax (VAT), but which no VAT is currently payable. For instance, the British Chancellor of the Exchequer may decide not to levy a VAT tax on children's clothes, so children's clothes are rated as zero-rated for VAT.
This is the value added tax on outputs. Any service or sale that the entity provides is considered an output. This is contrasted with Input Vat which is the tax on any inputs the entity acquires. Inputs being Inventory or Services recieved.For ExampleSales 100Cost of Sales 75VAT: 10%Output Vat100 x 10%= 10 PayableInput Vat75 x 10%= 7.5 ClaimableNet VAT Payable= 2.5 Payable
Computer A/C Dr.150000 VAT Input19500 To Global Digitronix 169500(Being Computer purchase from Global Digitronix on credit)169500169500
No, Net Amount is the amount before VAT is added. Once VAT is added it then becomes the Gross Amount. Net price is exclusive of VAT