The difference between vat exclusive and vat inclusive is that vat exclusive is the price before tax is added on. Vat inclusive is the price after tax has been added on.
vat exclusive
simpleParty A/c Dr. (inclusive of vat)sale A/c Cr. (exclusive of vat)Vat output Cr.
VAT is accounted for in the Balance Sheet if you have the right to claim VAT on purchases and liability to pay VAT on sales respectively i.e. if you are VAT registered. VAT on purchases is accounted for in the Profit and Loss (purchases are entered gross i.e inclusive of VAT) if you have no right to claim it i.e. if you are not VAT registered.
Nett is pre VAT on an invoiceGross it the total cost due (inclusive of VAT)Hope this helpsLiz. H
The difference between vat exclusive and vat inclusive is that vat exclusive is the price before tax is added on. Vat inclusive is the price after tax has been added on.
vat exclusive
vat inclusive- Gross price (price after adding tax)vat exclusive-net price (price before adding tax)
If the 545 is inclusive of VAT then the VAT element is 71.08, however if the 545 is exclusive of VAT then the VAT would be 81.75
£1,020 plus 17.5% Vat of £178.50 = £1,198.50 If the £1,020 is inclusive of 17.5% VAT then the VAT amount = £151.92
simpleParty A/c Dr. (inclusive of vat)sale A/c Cr. (exclusive of vat)Vat output Cr.
VAT is accounted for in the Balance Sheet if you have the right to claim VAT on purchases and liability to pay VAT on sales respectively i.e. if you are VAT registered. VAT on purchases is accounted for in the Profit and Loss (purchases are entered gross i.e inclusive of VAT) if you have no right to claim it i.e. if you are not VAT registered.
Nett is pre VAT on an invoiceGross it the total cost due (inclusive of VAT)Hope this helpsLiz. H
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
6475 Assuming V.A.T. is 20% Calculated as 7770 / 1.2 As in 100% + 20% = 120 which is 1.2 of total
'6 percent tax' can mean 2 things, depending whether or not the tax is inclusive. If it is not inclusive it means that you owe a further 6% of whatever your buying/receiving. For example if you're buying something for £100 and VAT (at 6%) is not included you would owe £6 to the tax man. If it is inclusive it means that 6% of whatever your buying/receiving. If you are buying something for £50 and VAT is included (at 6%) 6% would be paid to the tax man for you.
Yes