The general formula for calculating the Value Added Tax is the base cost of an item multiplied by the appropriate VAT rate for the item, as detailed by HM Revenue & Customs. To calculate the VAT of an item when the VAT is already included in the price, divide the total price of the item by 100 percent plus the applicable rate of the VAT.Continue Reading
For example, if an item costs $100 plus a VAT rate of 20 percent, the VAT calculation is $100 x 0.20 = $20, as shown by HM Revenue & Customs. The total cost of the item, including both the base price and the VAT, is found by adding the two together. For an item that costs $100 with a 20 percent VAT, the final price is calculated as $100 + $20 = $120.
To find the VAT from an item that has a total cost of $105, including a VAT taxed at a rate of 5 percent, the proper calculation is $105/1.05 = $100 to find the value of the item. From there, the VAT can be found by subtraction, as in the formula $105 - $100 = $5. When the VAT is included in the price, the price is considered VAT-inclusive. When VAT is not included, the price is VAT-exclusive, according to HM Revenue & Customs.Learn more about Taxes
The Virginia tax rate table is the calculation taxpayers use to figure out which of the four tax brackets they fall into and how much tax they owe the state. Virginia tax rates are based on adjustable gross income. If a taxpayer's adjustable gross income is below the filing threshold of $11,950 for single or married filing separately, or $23,900 for married filing jointly, the tax owed is zero, states the Virginia Department of Taxation.Full Answer >
Information on the 2014 capital gains tax rate is available on the Internal Revenue website, in Chapter 16 of IRS Publication 17, titled Your Federal Income Tax. Information regarding the capital gains tax in general is available under Tax Topic 409, Publication 550, titled Investment Income and Expenses.Full Answer >
Tax rates on commission fall into three different categories: a flat tax rate, aggregate rate and rate for commissions over $1 million, according to the Houston Chronicle. The tax rate applied depends on the type of earner and the amount of commission.Full Answer >
Tax schedules are rate sheets that taxpayers complete and attach to tax returns for certain types of income or deductions, explains Turbo Tax. Circumstances requiring tax schedules include mortgage interest and interest income.Full Answer >