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Question Bpp..zim06/15 no 295
Zim is registered for VAT since 1 april 2007..sales is made to general public
Purchases invoice totalling £49200 were received of which £43200 were in respect of standard rated purchases and £6000 for zero rated purchases.
Figures are vat inclusive where applicable
Vat payable is 43200*20/100 for standard and 0 for zero rated..
While i am getting 6000*20/100 for zero rated..plz help..
There is NO VAT on zero rated sales / purchases – so remove the 6000 from the total sales figure and the balance of 43,200 is the VAT inclusive figure of the standard rated purchases,
To then establish the amount of VAT on a VAT inclusive figure take 20/120 of that figure, NOT 20/100