VAT calculation, collected VAT, deductible VAT, VAT due, Value-Added Tax, indirect tax, consumption tax, General Tax Code, CGI, Article 278, normal VAT rate, reduced VAT rate, special VAT rate, business taxation, France
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Abstract
Understand how to calculate VAT due for businesses, including collected and deductible VAT.
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[...] In total, the total amount of invoices is 18,000 ? TTC; therefore, we must apply VAT to each of its invoices in order to determine the collected VAT. As for deliveries, the prices are in TTC, we must convert them to HT before applying VAT. However, as for repairs, since it is not specified whether the price is TTC or HT, we must deduce that these prices are HT Deliveries: 5000 / 1.2 = 4166.67 ? HT 10,000 / 1.2 = 8,333.33 ? [...]
[...] In order to calculate the amount of VAT, it is first necessary to convert the price including VAT (PITC) to the price excluding VAT in the case where the VAT rate is Price PITC / + 0.2) = Price PITC / 1.2 = Price PIT Then, once the price PIT is obtained, it is sufficient to multiply it by the VAT rate, here 20 % Price PIT x 0.2 = VAT M. Deville achieved a turnover of 30,000 on this amount we must calculate the VAT he collected and which corresponds to the VAT collected. Calculate VAT on Price TTC Price TTC / + 0.2) = Net Price HT x 0.2 = VAT Amount 30000 / 1,2 = 25000 25000 x 0.2 = 5000 He received 5000 ? of VAT Then, for all its invoices, it paid VAT to its supplier, which corresponds to the collected VAT. [...]
[...] Calculation of VAT In this case, Mr. Deville runs a hardware store in the center of Aix-en-Provence, and he has achieved a turnover of ?30,000 TTC for the month of January 2024. At the same time, he has paid several invoices: - ?5,000 TTC for the delivery of a lot of gardening tools. - ?10,000 TTC for the delivery of a lot of electrical appliances - ?1,000 for repairs of the van with which he makes his deliveries - ?2,000 for repair of the store's alarm. [...]
[...] VAT 833.33 + 1667 + 200 + 400 = 3100.33 ? VAT The deductible VAT is 3100 ? VAT due = 5000 - 3100 = 1900 ? (1899.67, rounded up) M. Deville will pay 1900 ? of VAT to the public treasury for the month of January 2024. [...]
