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cuz da government needs sweeties 4 all dem meetings ennit
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∙ 10y ago
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Why is vat collected?
Value Added Tax (VAT) is government applied tax on taxable supplies at different rates most of which is 15% in UK, while lower rate 5% and zero-rate are used as well. Let's say there is a company A,which manufactures cars and sells it to the distributors.Now the company A will charge VAT to distributor and include on the invoice. Now A has simply collected the VAT on behalf of government and has the liability to pay the VAT collected back to government. While the distributor can claim that paid VAT back from the government if the distributor is VAT registered.so by this point, government has actually received nothing,as it returned to the distributor whatever it received from the company A. Now, when the distributor sells the car to end-user, distributor charges VAT to that end-user and collects the VAT again on behalf of government, and pays the VAT collected to the government.As the end-user cannot be VAT registered, so he cannot claim the VAT paid from the government, so the government has now actually received the VAT inflow.
Differentiate between input VAT and output VAT?
Input VAT is the tax imposed on purchase whereas Output VAT is the tax charged on selling items
The vat output account has a debit balance or a credit balance?
normal balance of output VAT
Can you use Quickbooks for VAT recording?
Yes. QuickBooks supports Cash, Flat Rate, and Standard VAT accounting schemes for both monthly and quarterly VAT submissions. QuickBooks accounting software calculates the amount of VAT you owe and reminds you when it’s due. Our smart error-checking technology checks for common mistakes and lets you make an online submission directly to HMRC. Hope You Find This Useful, Peter
What is VAT used for?
Isn't VAT used to pay for things the goverment funds like social services and the police. That's what a lot of taxes are used for. Please correct me if i'm wrong ==== I kept the original answer which is a question used to answer another question. A VAT generally stands for a "Value added tax". As with all taxes, the monies raised are for pay down a current deficit or to raise funds for Government operating expenses or to undertake a new venture such as placing a man on Mars. The VAT is usually a national sales tax. Currently in parts of Europe for example it is a common method to raise funds. In the United States, so-called US State sales taxes are likened to a national sales tax, of which the Federal Government is reluctant to add upon already high sales taxes. Although I believe the Federal Government & individual states all tax gasoline purchases. Most of the time, however, the VAT is discussed as a means to not raise Federal income taxes. The political climate for a VAT in the USA is a negative. The Federal Government is more likely to use "luxury" taxes or create a more progressive federal income tax OR yet still close some of the many Federal income tax loopholes.
Do you pay vat if the customer is vat exempt?
no. because when customer is notpaing vat only he have vat exwmption only/
What is ex-vat to pay?
what does exvat to pay mean
What is ex vat to pay?
what does exvat to pay mean
How much VAT do i pay when importing to israel?
Search unitmeasure vat calculator
Do you pay stamp duty on vat?
no
Who pays for vat?
You pay VAT on goods items. VAT (value added tax) is at 20% of the item you buy. So say you bought a 1000 pounds worth of TV, you would pay 100 pounds VAT. hope this helped
What is paying vat?
what does exvat to pay mean
Who will pay vat in FIJI?
consumers of FII
If a UK resident buys a service from an offshore company do they have to pay VAT?
A UK resident buys a service from an offshore company. If the UK resident does not pay VAT to the offshore company, the offshore company does not have to pay VAT to the UK government. UK residents who buy services from offshore companies may be subject to VAT if they do not pay VAT to the offshore company. Hope this will help you, If you need any further assistance regarding VAT you can contact us at: taxlibrarian.co.uk/ or Call us at: +44 207 167 4301
What will happen if you fail to pay VAT?
You will not get what your trying to buy. In case your wondering the T in VAT stands for Tax.
Is vat entered in the profit and loss account?
VAT is accounted for in the Balance Sheet if you have the right to claim VAT on purchases and liability to pay VAT on sales respectively i.e. if you are VAT registered. VAT on purchases is accounted for in the Profit and Loss (purchases are entered gross i.e inclusive of VAT) if you have no right to claim it i.e. if you are not VAT registered.
Give you a sentence with the word vat?
you have to pay VAT (value added tax) on everything except food and childrens clothes
