Added value, total cost, the magnitude of which increases the cost of raw material and materials at each stage of the production, sale or resale. To determine the amount of value added in two ways: summing all its components or subtracting the value of all components of the feedstock from the cost of the implementation of the product. The current tax legislation of the Russian Federation recommends to use the second method when calculating value added.
Calculate the value added cost (DS) formula: DS = PSA – Sz, where CPN - cost sales of goods, WT is the cost cost of all material components of the raw materials and the depreciation from that used in the manufacture of the equipment.
This method of calculating value added tax allows to use the indirect method of subtraction in which the tax rate (SN) is applied separately to the cost of sales and cost, which, in essence, are the purchase price of raw materials, equipment, etc. Thus, to calculate the value added tax (VAT) use the formula VAT = (SN * PSA) – (CH * Sz). This formula allows not to use in the calculation itself added value, and to apply the tax rate to its components – costs (excluding wages) sales.
Using this method of calculation value added tax is convenient because it allows you to apply the tax rate directly in the time of the transaction, giving advantages both technically and in legal terms. In this case, use the invoice in which the final amount of the transaction is subject to the value added tax. This document is the most important and fundamental in the transaction, because it contains information about tax obligations and makes it possible to control the movement of the goods to verify the correctness of tax assessment.