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Isn't VAT used to pay for things the goverment funds like social services and the police. That's what a lot of taxes are used for. Please correct me if i'm wrong
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I kept the original answer which is a question used to answer another question.
A VAT generally stands for a "Value added tax". As with all taxes, the monies raised are for pay down a current deficit or to raise funds for Government operating expenses or to undertake a new venture such as placing a man on Mars.
The VAT is usually a national sales tax. Currently in parts of Europe for example it is a common method to raise funds.
In the United States, so-called US State sales taxes are likened to a national sales tax, of which the Federal Government is reluctant to add upon already high sales taxes. Although I believe the Federal Government & individual states all tax gasoline purchases.
Most of the time, however, the VAT is discussed as a means to not raise Federal income taxes. The political climate for a VAT in the USA is a negative.
The Federal Government is more likely to use "luxury" taxes or create a more progressive federal income tax OR yet still close some of the many Federal income tax loopholes.
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Differentiate between input VAT and output VAT?
Input VAT is the tax imposed on purchase whereas Output VAT is the tax charged on selling items
Why is vat collected?
Value Added Tax (VAT) is government applied tax on taxable supplies at different rates most of which is 15% in UK, while lower rate 5% and zero-rate are used as well. Let's say there is a company A,which manufactures cars and sells it to the distributors.Now the company A will charge VAT to distributor and include on the invoice. Now A has simply collected the VAT on behalf of government and has the liability to pay the VAT collected back to government. While the distributor can claim that paid VAT back from the government if the distributor is VAT registered.so by this point, government has actually received nothing,as it returned to the distributor whatever it received from the company A. Now, when the distributor sells the car to end-user, distributor charges VAT to that end-user and collects the VAT again on behalf of government, and pays the VAT collected to the government.As the end-user cannot be VAT registered, so he cannot claim the VAT paid from the government, so the government has now actually received the VAT inflow.
The vat output account has a debit balance or a credit balance?
normal balance of output VAT
Can you use Quickbooks for VAT recording?
Yes. QuickBooks supports Cash, Flat Rate, and Standard VAT accounting schemes for both monthly and quarterly VAT submissions. QuickBooks accounting software calculates the amount of VAT you owe and reminds you when it’s due. Our smart error-checking technology checks for common mistakes and lets you make an online submission directly to HMRC. Hope You Find This Useful, Peter
What Is VAT And Do I Need To Register For It?
VAT is a value added tax that taxable persons are obliged to register where their annual forecasted turnover surpasses or will probably exceed a particular threshold.
What is a vat?
A vat is a large tank or receptacle that is used in various industries. A vat can be as big as a house or as small as a kitchen sink. A vat is used to mix ingredients of many things.
What is vat c4?
The Form VAT C4 is a form used a certificate issued by a selling VAT dealer to a purchasing VAT dealer. It lists the items that were sold, tax invoice number, date, taxable amount, and amount of tax.
What is form vat C4?
The Form VAT C4 is a form used a certificate issued by a selling VAT dealer to a purchasing VAT dealer. It lists the items that were sold, tax invoice number, date, taxable amount, and amount of tax.
What is the vat tax used for in taxes?
The VAT(Value-Added Tax) is most commonly used in the European Union. It is used whenever value is added to a product at the stage of production and at the final sale.
How many types of vat?
The types of VAT........ 1 ) INPUT VAT @ 4 % 2 ) INPUT VAT @ 1 % 3 ) INPUT VAT @ 12.5 % 4 ) OUTPUT VAT @ 1 % 5 ) OUTPUT VAT @ 4 % 6 ) OUTPUT VAT @ 12.5 %
Gross of vat and net of vat?
There is no such term as gross of VAT. The amount with VAT is called the gross amount while the net of VAT is the amount after the VAT has been deducted.
What is the purpose of VAT specialist accountants in the UK?
The purpose of VAT specialist accountants in the UK is to assist with the VAT registration process and provide guidance on how to use the VAT system. They will be able to answer questions about what is VAT, what it is used for, and how to use it in the UK. They will also be able to offer advice on the difference between VAT and other taxes, and how to pay and reclaim VAT. If you are looking for VAT specialist accountant in UK then feel free to contact us. Visit our website Proactive Consultancy Group - TPCGUK or You can also call us at: +44 207 193 7072
What is VAT output and VAT input?
VAT that is charged by a business and paid by its customers is known as "output VAT" (that is, VAT on its output supplies). VAT that is paid by a business to other businesses on the supplies that it receives is known as "input VAT
Is net of vat is the same with vat inclusive?
vat exclusive
What is vat in tally?
VAT is Value Added Tax (Sales Tax in the USA). The term is used in the UK more than anywhere and is a sales tax on items and services. The current VAT in the UK is 20% across most items/services. There are anomalies where certain foods are VAT free.
Do you pay vat if the customer is vat exempt?
no. because when customer is notpaing vat only he have vat exwmption only/
Calculate 15 percent vat in 545?
If the 545 is inclusive of VAT then the VAT element is 71.08, however if the 545 is exclusive of VAT then the VAT would be 81.75
