The essence of VAT

The calculation of the VAT amount is an important aspect of accounting. Tax rate of VAT is the default 18%, and certain categories of goods are taxed with rates of 10% (medical products or children's products) or 0% (exported goods). VAT charged on imports.

The price of almost any commodity consists of the price and VAT amounts. Organizations and individual entrepreneurs who sell goods or provide services, are obliged to transfer the VAT amount to the budget. Despite the fact that the VAT is paid to the budget by companies that actually pay it, the consumers out of pocket. It turns out that buying any product buyers pay 118% of its value (or 100%+VAT rate).

VAT payers are all companies and individual entrepreneurs, except for those that apply special regimes (STS or UTII).

How to calculate the cost of goods without VAT

In most cases, the cost of goods on the shelves of stores given with VAT. Of course, there are other situations where the seller quotes a price without VAT, but at checkout, the buyer need to pay extra for another 18% of purchase cost. Primarily this is done for marketing purposes, because buyers think that these products are cheaper, but in the end they spend more money.

To calculate the cost of goods without VAT is very simple. Should the final price with VAT divided by 1.18 (118%). For example, the cost of the goods including VAT is 15,000. Accordingly, the price without VAT will be 12711,86 R.

It should be noted that this calculation is not quite accurately reflects the actual value of the goods because the buyer can only see the final price. This is due to the fact that the product is made of parts of different components, which each manufacturer also calculates your VAT. Therefore, the final value of goods already includes a number of VAT. In this regard, to calculate the cost of goods without VAT is problematic.

Automated VAT calculation

Despite the fact that the VAT calculation seems to be very simple, for those who for whatever reason do not want to carry out the calculation, it is possible to automate this process. To do this, in Internet you can easily find specialized calculators, which are input data (the value of goods with VAT) and they will instantly provide a ready answer - the price of the goods without VAT.

Accountant in organizations rarely calculate the VAT themselves, for them it automatically makes the accounting program. For example, the "1C: Accounting" and "1C: Enterprise". For that accountant you only have to enter the tax rate, the rest of the program will make. But these specialized programs are paid, they have a wide range of functions and purchase them only for VAT calculation is impractical.