In our country, the sale of goods, works or services in most cases must be accompanied by the payment of value added tax. This procedure is declared in Art. 168 of the Tax Code of our country.
The standard value added tax rate is 18%, but in some cases a preferential rate of 10% is applied.. Both types are widely used in modern tax accounting, and a practicing accountant has to deal with them daily. When dealing with taxes, there are two most common difficulties:
- how to subtract VAT from the amount.
The calculation methods in both cases are different and should not be confused. Let's consider with examples how VAT is calculated, which must be added to the invoice to the main cost of the goods (services, works).
The calculation of the tax accrued on the goods sold, works sold or services performed is performed as follows:
VAT = BdN × StN / 100.
In this formula:
- bdn is the basis for taxation;
- stn — the current tax rate applicable to this category of goods;
Example 1
Parameter LLC has completed some work for its client and is ready to provide him with an invoice. The cost of the work performed amounted to 17,300 rubles. The rate in this case is the main one, and is 18%. The total value of this tax is:
VAT \u003d 17,300 × 18 / 100 \u003d 3114 rubles.
Both the base amount of work performed and the accrued value added tax are subject to payment.
The account for the client will look like this:
- 1 section - the name and list of work performed;
- the “total” section, in which the total amount of 17,300 rubles will be indicated;
- section 2 - tax calculated according to the above formula - in our case it amounted to 3,114 rubles;
- Section 3 "total payable" is the total cost of basic work, plus accrued tax. In our case, "total" will be:
17 300 + 3 114 = 20 414 rubles.
This amount must be paid by the client.
Example 2
Parametr LLC supplied its customers with baby food in the amount of 14,100 rubles. In our country, this category of goods is subject to a preferential tax rate of 10%.
VAT in this case will be equal to: 14,100 * 10/ 100 = 1,410 rubles, and the total invoice amount will be 14,100 + 1,410 = 15,510 rubles.
How to subtract VAT from the total amount
The reverse operation looks a little more complicated - the full cost of goods, services or works is known, and it is required to "extract" tax from it. For example, an accountant needs to know how to calculate the 18% VAT included in the invoice amount. To find the required value, apply the following formula:
- VAT = Total amount × 18 /118 — for 18% rate.
- VAT = Total amount ×10/110 — for 10% rate.
Example 3
Parameter LLC received an invoice for the total amount of 32,600 rubles. Items on the invoice are included in the general category and are taxed at the basic rate.
The calculation formula gives:
VAT \u003d 32600 × 18 / 118 \u003d 4972.88 rubles - It is this amount that should be taken into account in the declaration when making a tax deduction.
How to calculate VAT quickly
Many accountants, instead of using standard VAT formulas, use odds. For example, when calculating tax on goods sold in the first example, it is easy to calculate the final figure of the invoice as follows:
17,300 * 1.18 \u003d 20,414 rubles.
With the reverse operation from example 3:
32,600 × 0.152542 = 4972.88 rubles
But it is important to remember that the coefficients do not reflect the essence of the value added tax calculations, and with the slightest change in the rate, such a coefficient will lose its meaning. In addition, the use of coefficients often leads to incorrect rounding - errors are possible in the second digit after the decimal point. Therefore, calculate the amount of value added tax correctly and use our simple formulas for this.
