VAT EXAMPLE FOR BUSINESS ENTITY - MANUFACTURERS, DEALERS, DISTRIBUTORS & RETAILERS
Example of VAT calculation for Manufactures
AED
| Purchase Cost | 50.00 |
| VAT paid @5% | 2.50 |
| 52.50 | |
| (+)Value addition | 5.50 |
| (+)Profit | 2.00 |
| Selling Price | 60.00 |
| (+)VAT @5% charged | 3.00 |
| Total Price | 63.00 |
INPUT TAX CREDIT | |
|---|---|
| VAT @5% charged | 3.00 |
| VAT paid @5% | 2.50 |
| Net Vat payable | 0.50 |
