Value added tax vat
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Value Added Tax (VAT) PowerPoint PPT Presentation


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Value Added Tax (VAT). Notes. 1- The amount shall be paid if the total Sales VAT is greater than the sum of the purchase VAT. 2- The amount of the return if the total Sales VAT is less than the sum of the purchase.

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Value Added Tax (VAT)

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Value added tax vat

Value Added Tax (VAT)


Notes

Notes

1- The amount shall be paid if the total Sales VAT is greater than the sum of the purchase VAT.

2- The amount of the return if the total Sales VAT is less than the sum of the purchase.

3- Amount to pay  the difference between VAT on sales and VAT on purchase.


Value added tax vat

Case(2):

The following are some information for Hadara Company, and tax registration number 563105114 for 12/2009:

Purchases :

1- On 3/12 purchased 5 fridges amounted 3000 per unit and not include VAT, from Naser Company invoice number 64 on credit.

2- On 7/12 purchased 5 TVs 16« with price 1300 per unit, and 6 TVs 20« with price 1700 per unit and the price not include VAT, invoice number 257.


Value added tax vat

3- On 16/12 purchased 10 fans with price 105 per unit include VAT and 8 heaters with price 120 per unit include VAT from Sharaf Company invoice number 346 with cheque.

4- On 31/12 paid Paltel expense invoice number 791 with total amount 232 .

5- On 31/12 the company return 2 fridges to Naser company and get sales return invoice number 6.


Value added tax vat

Sales:

1- On 3/12 sold 3 fridges with total value 12600.

2- On 15/12 sold 4 SONY TVs 16« with price 1800 per unit includes VAT and 6 TVs 20« with price 2200 per unit include VAT with cheque.

3- On 23/12 sold 8 fans with basic value 760 by cheque.

Note : The NIS is the currency used.


Value added tax vat

Required:

1-Prepare the statement of sales and purchase for 12/2009.

2-Prepare the journal entries for the transactions that occurred on 12/2009.

3- Determine the VAT to be paid or refund, and prepare the related entries.


Value added tax vat

  • Purchase statement :


Value added tax vat

Purchase entries:


Value added tax vat

  • Sales statement:


Value added tax vat

Sales entries:


Value added tax vat

VAT = In tax – out tax = 4289.23– 3981.04 = 308.19

The adjusting entry for preparingfinancial statement 12/2009 is:

VAT 308.19

Accrued VAT 308.19

According to the tax law (VAT must be paid before 15/1/2010)

The entry of :

Accrued VAT 308.19

Cash 308.19


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