Calculating VAT when it's not shown.
Discussion
Multiply the VAT inclusive cost by 7/47 to get the VAT element.
Multiply the VAT inclusive cost by 40/47 to get the VAT Exclusive element.
Invoices of £250 (VAT Inclusive value) or less do not need to show the VAT content seprately - although the trader's VAT number must ALWAYS be shown for the invoice to be counted as a valid VAT invoice. The RATE of VAT being charged should still be shown as well.
Multiply the VAT inclusive cost by 40/47 to get the VAT Exclusive element.
Invoices of £250 (VAT Inclusive value) or less do not need to show the VAT content seprately - although the trader's VAT number must ALWAYS be shown for the invoice to be counted as a valid VAT invoice. The RATE of VAT being charged should still be shown as well.
Edited by Eric Mc on Tuesday 6th February 12:39
Use the 7/47 formula - it's the easiest.
Just be careful that you do not use it when it isn't appropriate. When using Excel it is easy to copy a formula into a column so that all entries have the formula applied to them. Watch out for things like train fares, stamps and postage, MOT bills, insurance costs, and council car parrking )as opposed to private car parking) which DO NOT have VAT included and there is therefore no VAT to reclaim..
Just be careful that you do not use it when it isn't appropriate. When using Excel it is easy to copy a formula into a column so that all entries have the formula applied to them. Watch out for things like train fares, stamps and postage, MOT bills, insurance costs, and council car parrking )as opposed to private car parking) which DO NOT have VAT included and there is therefore no VAT to reclaim..
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