Assume a flat rate percenatge of 12%... and sales of $80000 where $30000 is zero rated... what is the differences if sales were exclusive of VAT and inclusive? Assume Vat of standard rated sales $8750... Do we do 12% of 80000 and add with 8750 for exclusive of Vat and only 12% of $80000 for inclusive of Vat when calculating flat rate?
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Vat
We multiply the percentage by the total VAT inclusive sales (standard, zero and exempt) with no deduction for input VAT
In your example
12% x (80000 x 1.2 + 30000)=15120
Please use £ not $ as the exam is in £
Hope this helps
In your example
12% x (80000 x 1.2 + 30000)=15120
Please use £ not $ as the exam is in £
Hope this helps
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