VAT Calculation
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shawnwalter
Posts: 1 Newbie
Dear All ,
how i can add vat 5% on purchasing ??
because In my country they calculate VAT like this (VAT On Purchasing )-(VAT On Sales)=VAT I have to pay for government ??..
how i can add vat 5% on purchasing ??
because In my country they calculate VAT like this (VAT On Purchasing )-(VAT On Sales)=VAT I have to pay for government ??..
0
Comments
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Are you buying or selling? Are you VAT registered in the UK, if not you cannot add VAT to sales.
if you mean you are selling into another country, any VAT due there will be collected from the recipient at the time of import, you don’t charge it yourself.0 -
shawnwalter said:Dear All ,
how i can add vat 5% on purchasing ??
because In my country they calculate VAT like this (VAT On Purchasing )-(VAT On Sales)=VAT I have to pay for government ??..
The calculation will be the reverse of what you wrote:
Output VAT (sales) - Input VAT (purchases) = VAT payment to HMRC
Where do you get 5% VAT rate from?0 -
shawnwalter said:Dear All ,
how i can add vat 5% on purchasing ??
because In my country they calculate VAT like this (VAT On Purchasing )-(VAT On Sales)=VAT I have to pay for government ??..
It would normally work the same in the UK if you are VAT registered but there are a few schemes, eg the flat rate scheme, to simply accounting for certain small firms or industries. So with the flat rate scheme for example you'll simply pay over a fixed percent of your gross sales no matter what VAT you've charged or been charged.
It would help if you clarify exactly what scheme you are referring to with the 5%0
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