Calculating VAT?

by Kevin
(South Africa (Pretoria))


Q: How do I calculate the VAT (Value-Added Tax) included on the debtor and creditor control account?


A:
Control accounts for debtors and creditors are the full amounts including VAT that is owed from one party to another. Assuming VAT is 14%, to calculate the VAT portion you take the total (e.g. R200) and times by 14/114.So this would be:
R200 X 14/114 = _______

Comments for Calculating VAT?

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Gross profit earned
by: Anonymous

Hi,

If I'm given an exclusive cost price per unit of R2104, and the inclusive price is R2398.56, and the markup percentage is 60%, do I calculate the gross profit earned with or without VAT?

I know how to do the calculation, I'm just not sure if gross profit includes or excludes VAT.

Also, how is a gross margin percentage calculated with the figures given above?

Thank you in advance!

Query
by: Anonymous

How do we calculate output VAT and surcharge on total sale?

VAT
by: Anonymous

How do I calculate the VAT amount for a single item on my receipt knowing the total amount of VAT and the total amount of the purchase of 5 items?

Great help God bless you
by: NUKhan

Regarding VAT it is a real refresher.
Thanks for sharing.

Calculating VAT
by: Anonymous

What is the reason for adding the 10% to the actual value of goods when calculating VAT?

Rep. of South Africa VAT
by: Anonymous

For services rendered on an invoice to a client what would the VAT amount be on R1960 (Rands-South African currency) of 14%?

Help
by: Anonymous

If I have the item price and selling price how do I work out the percentage?

VAT Calculation in very Simple Way
by: Chris

To put it is a very simple way.

Item price: 4,954
VAT: 14%

To get the total amount all you have to do is:

Convert the percentage rate to a decimal number

- 14 divided by 100 = 0.14 (or simply move the decimal point 2 places from right to left)

Then

- Multiply the item price by the VAT decimal amount (4,954 X 0.14 = 693.56)

693.56 is 14% of 4954

Then

- Add the item price and the VAT amount (4954 + 693.56 = 5647.56

5647.56 is the total cost of the item including the VAT


____________________________________________

The key here is to know how to convert the percentage rate to a decimal number which is very simple (you just need to move the decimal point 2 places from right to left)

That means: 23% is 0.23
2% is 0.02
10% is 0.1
1% is 0.01
38% is 0.38

As simple as that!

Inclusive and Exclusive
by: Boitumelo

Hey guys I have some few questions on till slip
The total item R498.93.
1) Calculate the amount payable including 14% vat
2) What is the total amount exclusive jurisdiction of Vat

VAT Including or Excluding
by: Anonymous

How do I know when to use 14/114 if VAT is 14 percent?

confussed
by: Anonymous

You say assuming vat is 14% what do you mean by assuming. The fact is vat is 14%.

VAT exists in different countries, not just in one country. Some countries have something similar and call it a sales tax. In South Africa VAT is 14% (I think) but it's different rates in other countries that have VAT or a sales tax.

Best,

VAT only
by: Anonymous

Hi

If I only have the VAT amount eggs R1356.52, how do I calculate the exclusive and inclusive amounts. 10% is easy as you only move the dot, and 5% will always be half of any 10%.

Tx

10% is actually not always so easy but definitely easier to calculate than say 14%. I'm assuming 10% is the rate and that R1356.52 is just the VAT on the eggs, I hope I understood that right.

Exclusive amount is 100/10 X R1356.52.

The full inclusive amount is 110/10 X R1356.52.

Best,

VAT Rate
by: Anonymous

If I purchase a pen, excluding VAT (at a rate of 14%), is R75. Then the VAT is...

Then the VAT is R75 x 0.14 = R10.50

Best,

VAT Question
by: Anonymous

The advocate charged R975 VAT exclusive but here I get R1,111.50 VAT inclusive. Now my question is how did we get that R1,111.50 answer?

VAT is based on the R975. If VAT is 14% then it's 14/100 of the R975. We can calculate VAT by saying 14/100 X R975 = R136.50. R975 + R136.50 = R1,111.50.

Or an even quicker way of solving this is to simply say: 114/100 X R975 = R1,111.50

Hope that helps!

Best,

Question
by: Anonymous

If my VAT rate is 14% and I have purchase price of 48,000 as my Net Price, I understand my Gross price will be 54,720 (48,000 X 1.14 = 48,000). On my study guide there is 6,720. How was this 6,720 derived?

Net purchase price 45,000 + 3,000 = 48,000
add VAT at 14 % (then it says) 6,720

Total purchase price = 54,720

I believe the 6,720 was derived from 48,000 X 14%.

Best,

Calculate VAT
by: kuhle

the total is 318.59

Excluding VAT
by: Anonymous

Hi I would like to know how much would I have to cough out if I want to buy a device that cost 1750 excluding, and how much is it when vat included?

You do 1,750 x (100+VAT rate)/100.

E.g. the VAT rate is 15% so you do 1750 x (100+15)/100 = 2,012.50

Best

Vat
by: PG

Which is the correct way to do vat is it

times 14
divide 100
OR
times 14
divide 114

VAT CALCULATION
by: Anonymous

total amount is rs 468.00 it is including vat. but my question is that 468 x 13.5% is not equal to 468 x 1.135 how it calculate.

How to Add On VAT
by: Rozzi

add 14% vat to your net amount
7500. x 1.14 = 8 550.00 gross amount/incl

check
gross amount less net amount = vat 14%
8 550. - 7 500. = 1 050. vat amount

or
you have the vat amount and need to find net amount

100/14 x 1 050. = 7 500.net amount/excl

or
you have gross amount
8 550. / 1.14 = 7 500. net amount/excl



Work out the purchase or sale amount using the VAT amount
by: Edward

To work out the VAT backwards, say you know how much the VAT was, but you don't know what the sale or purchase amount is, you do this:

Say the VAT amount paid was R5,000.00
Take R5,000.00 and times it by 114, then divide it by 14.

So R5,000.00 x 114 ÷ 14 = R40,714.28

Which means the amount you paid for it was R40,714.28

Calculating VAT Backwards
by:

The total you pay is always the 114 part of the equation I mentioned above. In other words, it is the 100% paid for the product plus the additional 14% VAT added together.

When we go backwards from the total paid to find the VAT we do the following:

14/114 X Total Paid
=14/114 X R72,514.34
=R8,905.27

How Do I Calculate VAT Backwards
by: Bev

How do I calculate backwards...what's the VAT I paid on total of R72,514.34?

If only VAT amount is known
by: Anonymous

How do I calculate the inclusive/exclusive price if only the VAT amount is known? E.g. I know I was charged 50 VAT, what is the VAT inclusive price? And VAT exclusive price?

VAT on 7500
by:

If the R7,500 is the full price of the product or service, you get the VAT like this:
R7,500 X 14/114 = R921

If the R7,500 is the price before adding VAT, then you work it out as follows:
R7,500 X 14/100 = R1,050

In the last option above, the total price of the product or service including VAT comes to R8,550 (R7,500 + R1,050)

VAT manually
by: Anonymous

Hi all, need assistance. How do I step by step work out vat manually on paper? Going for an interview and I need a crash course.

vat calculating
by: Anonymous

like 7500, how do I put a vat n get a correct answer.

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