Vat Calculation Issue UK,

[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/

[jcb121]

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