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Understanding FBAmultitool VAT Calculations.


VAT to be remitted –This is when you deduct your selling VAT from your Buying VAT giving you a true idea of what VAT is owed. Example – 20% VAT

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Buy price (exc. VAT) 8.33 Buy Price (Inc. VAT) 10

Difference 1.67 VAT

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Sell Price (exc. VAT) 16.67

Sell Price (Inc. VAT) 20

Difference 3.33 VAT

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VAT to be remitted (What you owe the VAT man)

Buy Price 8.33 + 1.67 VAT (claim) Sell Price 16.67 + 3.33 VAT (owe)

= 3.33 – 1.67

= 1.66 owed in VAT

Disable VAT remitted- This is simply when you don’t claim any VAT on your purchases and you just pay the VAT owed.

Example – 20% VAT

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Sell Price (exc. VAT) 16.67

Sell Price (Inc. VAT) 20

Difference 3.33 VAT

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VAT OWED = 3.33 (We’re not claiming anything from the purchase)