FN-FORUM: VAT on books

date posted 23rd January 2007 16:41

Anyone care to take a look at this, I just want to be 100% sure I've got =
it
right in my head. Its to do with calculating vat on "baskets" that=92s =
include
things like books (vat exempt) books with cd roms( partial vat) and cd =
roms
(full vat)=20


Vat is due if=20
The BILLING country is not vat exempt (billing address may be
different to delivery address)
The product is not vat exempt

Two kinds of countries
Vat exempt
Vat applicable

THREE kinds of products
Vat exempt
Vat applicable (100%)
Vat applicable (various % but 15% initially)

Finally the delivery charge is always vat applicable if the country is =
vat
applicable. So even if the product is vat exempt but the BILLING =
country is
not, then VAT is still charged on that.

So calculating a basket is done as follows

ITEMS PRICE VATRATE VATCHARGEABLE
Item 1 =A3100.00 0 =A300.00 =20
Item 2 =A3100.00 100 =A317.50=20
Item 3 =A3100.00 15 =A3100 * .15 * .175 =3D =A32.62 (ie charge
17.5% vat on 15% of the price
=09
Delivery =A3100.00 100 =A317.50=09

Total for Vat applicable destination =20

=A3400.00 =A337.62

437.62
Total for VAT exempt Destination=09
=A3400.00 =A300.00

400.00