Is total income before VAT going to be less or more than total income before VAT?+REP

[Josh-H]

Is total income before VAT going to be less or more than total income after VAT?

I'm confused which way round they are :P

Thanks + REP to helpers.

[alexxxxx]

what the hell are you on about.

VAT is what you pay at the shops.

[Josh-H]

;4861526']what the hell are you on about.

VAT is what you pay at the shops.

I know but I'm doing an excel spreadsheet for I.C.T and the non-i.c.t bit has me stumped :P

[alexxxxx]

hmm.i don't really understand. Is it just tax or VAT?

it must be less before vat i suppose. but a company doesnt really keep the vat.

[Josh-H]

;4861530']hmm.i don't really understand. Is it just tax or VAT?

it must be less before vat i suppose. but a company doesnt really keep the vat.

That's what I thought.


Use appropriate formulae and functions to calculate:
• the total cost of each item sold
• the total income before and after VAT
• the expenditure for the business
• the total profit (do not include VAT)

[Carlsta]

I do business studies and i can tell you it's less before VAT :D

[surfer]

Wow my business teacher helped me remember this!
it goes

Income
Expenditure
Gross Profit
Fixed Costs
Net Profit
Vat
Total Income/Outcome

[Josh-H]

I do business studies and i can tell you it's less before VAT :D

Thank You.

[Holofoil]

After VAT means you've payed VAT (17.5%).
So if you've payed it you have less income...

So you're going to have more Income before VAT... You don't need business studies to know that.

[Coldplay]

Yeah... Your income is MORE before VAT, Your income is your Gross profit, and after expenses (Or Overheads, Which includes tax) it's your Net profit.

I understand your not doing accountancy so I won't bore you =]

[VPSwow]

You have the total price before VAT.
Then you add VAT usually at 17.5% added on so its more after the total price.

[FlyingJesus]

This shouldn't be in a question about income :S VAT is what you pay when you buy stuff (value added tax), the money that comes out of your income is, unsuprisingly, income tax.

[Coldplay]

VAT gets added onto everything :)

[VPSwow]

The question is quite confusing. Its hurting my head thinking about what its actually asking. But yes as Coldplay said, VAT is always added on, so if you are on about a business buying then the total would be less before VAT but if its selling then the total income will be more after VAT.

Well that seems to make sence in my head but may not in yours :P

[Hazza]

Is total income before VAT going to be less or more than total income after VAT?Total income before VAT will be LESS than after the VAT has been added.

E.g.
Price before VAT = £10.00 (Divided by 17.5 = 0.57142847 - You add this on - If I am correct, if not I'm a total idiot;))
Price after VAT (17.5%) = £10.57(142857) - Rounded up.

[Holofoil]

Hang on... The question is misleading.
Are you asking whether your income - from someone buying stuff from you etc. is less or more after VAT, or are you asking whether your income - after paying VAT is less or more?

You're getting totally different answers from different people, and no one's wrong.