There is no such term as gross of VAT. The amount with VAT is called the gross amount while the net of VAT is the amount after the VAT has been deducted.
Yes. Gross sales = Net Sales + VAT
The gross is normally figured before the VAT is added. The gross sales amount is used to determine how much the Value Added Tax will be.
Divide by 1.whatever the rate is. ie If vat is 17.5% you would divide the gross by 1.175 to get the net figure, the vat is the difference between the two.
yes
There is no such term as gross of VAT. The amount with VAT is called the gross amount while the net of VAT is the amount after the VAT has been deducted.
It should
Yes. Gross sales = Net Sales + VAT
Net means after deductions, VAT is a form of tax, 17.5% in the UK. Net VAT should therefore mean before the VAT is added, as NET is the smaller amount, Gross is the larger.
From net figure: assume Vat rate=16% Vat amount=16/100*net figure from Gross figure Vat amount =16/116*gross figure
The gross is normally figured before the VAT is added. The gross sales amount is used to determine how much the Value Added Tax will be.
Divide by 1.whatever the rate is. ie If vat is 17.5% you would divide the gross by 1.175 to get the net figure, the vat is the difference between the two.
yes
vat inclusive- Gross price (price after adding tax)vat exclusive-net price (price before adding tax)
Yes, if sales is VAT EXCLUSIVE
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.
Multiply the VAT figure by 5 ie: VAT amount £20 x 5 gives you a net figure of £100.00.