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Vat Calculation Issue UK,

Started by jcb121, July 10, 2014, 17:27:57 PM

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jcb121

I have been searching the forums for a solution but didn't come to any result.

I'm selling an item for £99.99. This is the amount a user will pay for the item.
So to work out the VAT it'd be £99.99 * 0.2 = 19.998.
So the item price should be 79.99.

but Virtue mart stores the item prices without VAT.
So it says £83 * 1.2 = £99.99
so the item price is £83 and the VAT is £17.

So this is wrong.

I have one rule that adds 20% for the VAT-Tax, Is there any way to make it work how I want?

Do i need to make a rule that takes away 20% and change my item price to £99.99?


Thanks
Jesse.

Matt_Ginn

When you're saying that the VAT should be 19.998, that's incorrect. £19.998 is 20% of the final price NOT the cost price. To work out the VAT from the final price, divide by 1.2 and then take that away from the final price. So £99.99 / 1.2 = £83.325 (your item/cost price) and the VAT is £16.665.

jcb121

So if I sold an item for £99.99, and then paid the Tax office £16, that'd be legal?


if that's correct and true then that's fine, just seems a bit off in my opinion.

AH

Worrying question from a retailer but here goes

VAT is not a matter of opinion, but a matter of government taxation law.

Sales price is 99.99

Cost= Sales Price /(1+(vat/100)

Cost is 83.325  - rounded that becomes 83.33
Retail is 99.99

Vat is cost-retail 16.66

http://www.vatcalculator.co.uk/

Regards
A

Joomla 3.10.11
php 8.0

jcb121

Quote from: Hutson on July 10, 2014, 19:03:03 PM
Worrying question from a retailer but here goes

VAT is not a matter of opinion, but a matter of government taxation law.

Sales price is 99.99

Cost= Sales Price /(1+(vat/100)

Cost is 83.325  - rounded that becomes 83.33
Retail is 99.99

Vat is cost-retail 16.66

http://www.vatcalculator.co.uk/


It's a mock site :)

Thanks for the link.

AH

live or not

You still need to understand the taxation laws relating to the products and regions in which you are selling.

Happy to provide links
Regards
A

Joomla 3.10.11
php 8.0