A calculation method using derivative rates

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In such cases, is used: 10/110 (for a VAT rate of 10%) or 20/120 (for a VAT rate of 20%), as well as 5/105 and 7/107 for the new rates for the simplified tax system of 2025. These formulas allow you to determine what part of the final price is only tax, and what is the cost without VAT. In general, such a calculation method should be used in several cases:


Let's assume that the organization received 75,000 rubles to the current account as an advance from another enterprise. Then the VAT is equal to:

Output and input VAT: how to correctly calculate the total amount of tax payable
It is not enough to simply determine the VAT amount. There are nuances that need namibia phone number list to be taken into account. For example, to correctly calculate the tax - what amount exactly the company will pay to the state - you need to familiarize yourself with another concept.

A tax deduction is an amount by which a company has the right to reduce its tax liabilities, taking into account previously paid taxes during purchases of products used in VAT-taxable activities. In other words, a company has the right to reduce the amount of VAT payable by the VAT that was previously charged by counterparties in the standard mode.

As a result, the tax that must be paid to the budget can be calculated as follows:

VAT payable = Outgoing VAT - Incoming VAT + Recovered VAT

That is, the amount of VAT that a company must pay when selling its products is determined based on how much it has already paid when purchasing raw materials. This is the deduction. Let's look at a simplified example without a restored tax, how to get a tax deduction.

A woodworking plant in the Russian Federation purchased materials - unprocessed wood for 500,000 rubles. Then the plant made it from boards and sold it to a furniture factory for 1.5 million rubles. Then the VAT calculation looks like this.