2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Value Added Tax, or VAT, was first used in France. The famous French economist M. Lore used this phrase as early as 1954. Four years later, this type of tax became mandatory for all citizens of this country. In addition, he gradually began to enter the economy and other European countries. VAT appeared on the territory of the Russian Federation during the period of the so-called formation of a market economy in 1992.
What is VAT?
VAT is the part of the money that is added by the seller of goods or services to the cost of creating this product or its purchase (the same applies to the services provided). The wages of employees are not included in VAT from the amount. In addition, the money that was paid for the goods is not brought here, especially if it was purchased from non-payers of this type of tax. Today, many are interested in how to deduct VAT from the amount.
Why is VAT so widespread?
The popularity of this tax can be explained by the following reasons:
- Thanks to the value added tax, it is possible to determine with perfect accuracy how much this or that product (service) costs on each individualstage of their production. It is thanks to VAT that products cannot be taxed twice.
- With the help of this tax, you can receive money from imports, but not interfere with exports. This allows you to introduce he althy competition and properly build the country's domestic market.
VAT in Russia
As already mentioned, the value added tax appeared in our country in 1992. Today, his rate is 18%.
Many goods and services are not subject to this type of tax. Therefore, it is simply impossible to deduct VAT from their value. As a rule, these are products that are exported. Goods for children are subject to a lower rate (10%). Also, those companies that operate on a simplified taxation system do not pay VAT. In recent years, the question often arises of how to reduce the interest rate of this type of tax or completely abolish it on the territory of our country. But so far no single decision has been made on this issue.
Calculate value added tax
Many, of course, are interested in how to deduct VAT from the amount. In order to simplify the task for non-specialized workers, special online calculators were invented, with the help of which it is not difficult to perform this action. But if you know the formula for calculating, then you can do it yourself. Moreover, the calculation is not very difficult and impossible.
In order to allocate tax, it is necessary to divide the cost of production by thisexpression: 1 + (VAT percentage): 100. We get the following picture. If the tax rate is 10, then divide by 1.1. If it is equal to 18, then on 1.18.
From the result you need to subtract the initial amount of money. You will get a negative number, but the tax must be positive. Therefore, multiply the sum by -1 (you can simply remove the "-" sign, then you don't need to calculate anything else). If the number turned out "with kopecks", then it is worth rounding it up.
To calculate the tax, you can either use special online calculators or try to calculate it yourself using simple formulas (18% rate is used):
- Defined amount x 1.18=amount including tax.
- A certain amount x 0.18=tax amount.
If you are looking for how to deduct VAT from the amount, then the following formula will come to your aid. You have a certain amount of money (let's define it with the Latin letter N). With a tax percentage of 18, we get this picture:
VAT=N x 18: 100
That is, if you have 10,000 rubles, then VAT from this amount will be 1,800 rubles (10,000 x 18: 1000). Next, you just need to subtract the resulting number from the original amount.
You see that the question of how to deduct VAT from the amount is not as difficult as it might seem at first glance. If you know special formulas, then everything can be calculated quite simply.
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