Definition:
Percentage Tax is the tax imposed on the gross receipts of non-vat registered business owner and is usually subject to 3% tax rate.
Showing posts with label output vat. Show all posts
Showing posts with label output vat. Show all posts
Sunday, February 17, 2013
Wednesday, February 13, 2013
VAT or Value Added Tax
Definition:
A VAT business transaction is subject to 12% tax rate.
Output VAT vs Input VAT
Output VAT is the 12% tax from the VATable sales or gross receipts of the VAT Registered business owner.
Input VAT is the 12% tax from the VATable purchases, disbursements or expenses made by the business owner.
The Input VAT is deducted from the Output VAT to get the net VAT payable.
Illustrative Formula:
Output VAT
Less: Input VAT
Equals Net VAT Payable
A VAT business transaction is subject to 12% tax rate.
Output VAT vs Input VAT
Output VAT is the 12% tax from the VATable sales or gross receipts of the VAT Registered business owner.
Input VAT is the 12% tax from the VATable purchases, disbursements or expenses made by the business owner.
The Input VAT is deducted from the Output VAT to get the net VAT payable.
Illustrative Formula:
Output VAT
Less: Input VAT
Equals Net VAT Payable
Subscribe to:
Posts (Atom)