Sumit Upadhyay
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How do you calculate VAT input?

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How do you calculate VAT input?
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  1. VAT that is the additional tax on the price when you purchase goods or services that are liable for VAT. If a buyer is VAT registered, and the costs therefore support an activity that is liable to be collected VAT on, then they can deduct the amount of paid VAT from their settlement with the relevant tax authorities.

    To calculate the amount before additional of VAT from a price inclusive of VAT, a divisor is used. This divisor comes from the relevant or applicable rate of VAT. Lets say 14%. So if our VAT-inclusive price is 114, we take this amount and divide it by 1.14 to get our price before the VAT of 100.

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