[vaibhavpjadhav]

How To Calculate The Vat & What Are The Exemption For It.
Kindly Give The Example For It.

[noor888]

retail price + VAT = random + 17.5%

for example: price of a calculator is 1000,calculate VAT
1000+1000*17.5
=1000+175
=1175

input VAT = 1000 +175 =1175
here 175 is VAT,
output vat is when the seller, sells the calculator on high price e.g with 2000
them 2000+2000*17.5
= 2000+350 = 2350
here 350 is VAT

them minus both VATS 350-175 = 175 which goes to HMRC


then entry for INPUT VAT is
purcahses a/c 1000
VAT a/c 175
to cash 1175


Entry for output VAT

cash a/c 2350
to sales 2000
to VAT 350


then make a T account of VAT




entry

VAt a/c 175
to cash 175

[morgaine300]

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