Hi everyone hope you could give me an opinion or suggestion.
Client registered with VAT and operating a mini market. My question is how can I calculate VAT output? Clients till does not provide VAT calculation.
I am thinking to use purchases fraction. But will that be accurate for stock purchase in that week or month is not sold in same period. Does anyone use any-other calculation methods?
Thanks for your valuable suggestions.
Replies (2)
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You need to use one of the retail schemes
There are five retail schemes
Apportionment Scheme 1: You apply the proportion of purchases at the particular VAT rate to the Daily Gross Takings to get the output vat.
There is an annual adjustment at the end of the VAT year, where you repeat the process on the annual figures.
Apportionment Scheme 2: You apportion the VAT on the basis of the expected sales price of the goods;.
Direct calculation schemes also include a stock adjustment.