Vat

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June 2, 2011 at 8:51 am #48838
sam12
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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?
June 2, 2011 at 9:56 am #82814
Tax Tutor
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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
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