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taxation act
A value-added tax (VAT) is a type of tax in which the tax is applied to a product whenever any value is added, including in its production and final stage.
VAT payable is found on customer invoices when you sell something.
VAT receivable also called input VAT is found on invoices coming in to your company. Or in other words input VAT is found on supplier invoices that you receive when you have purchased something to your company.
Output tax is VAT charged to the customer by a dealer making taxable sales. A dealer is an individual, partnership, or business that is registered under VAT. When a dealer is registered, VAT becomes chargeable on all taxable sales made by that dealer, Otherwise he is not liable.
The tax a dealer pays for purchases is input tax. Many purchases will carry a VAT charge, but when a dealer is registered under VAT, they can normally claim a credit for VAT charges on most business purchases. Input tax includes not only the VAT on your purchases of raw materials or on goods purchased for resale but also VAT on capital goods, such as machinery or equipment.
VAT receivable also called input VAT is found on invoices coming in to your company. Or in other words input VAT is found on supplier invoices that you receive when you have purchased something to your company. The input VAT is usually deductible which means if you have more purchases than sales in a month or quarter, or whatever VAT reporting period you have, you will actually get the surplus (Output VAT-Input VAT) back. That is why it is also called vat receivable
VAT payable is also called output VAT and is found on invoices you are sending to the customer. Or in other words output VAT is found on invoices going out from your company. When you sell something to a customer and send a bill to them in the form of an invoice you are also, usually, applying output VAT on the service or product. The output VAT should be paid to the tax authorities each period which is why it is called VAT payable. The Output VAT is deducted with the amount of Input VAT you have any given period. The difference (output-input) becomes your liability to the tax office. This is the amount you will need to pay to the tax authorities. Companies that sell more than they purchase for will always have a surplus of output VAT.
A value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally, based on the increase in value of a product or service at each stage of production or distribution.
VAT receivable also called input VAT is found on invoices coming in to your company. Or in other words input VAT is found on supplier invoices that you receive when you have purchased something to your company. The input VAT is usually deductible which means if you have more purchases than sales in a month or quarter, or whatever VAT reporting period you have, you will actually get the surplus (OUT PUT VAT-Input VAT) back. That is why it is also called VAT receivable.
VAT payable is also called output VAT and is found on invoices you are sending to the customer. The output VAT should be paid to the tax authorities each period which is why it is called VAT payable. The Output VAT is deducted with the amount of Input VAT you have any given period.
The value add tax some percentage from any additional value to any good or cost service we were purchased for resale again as per the legal
The company will pay the difference amount between input VAT and Output VAT
agree with Nazil Udupi .
Value Added Tax (VAT)is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.
For me personally, taxes have always been a bit of an obscure subject for adults) But only until I myself have not become that adult. Now I use a cool VAT calculator https://vatulator.co.uk/ which helps me a lot with calculations. I think you'll definitely need it!)
