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Is VAT included in turnover??

  • 11-01-2009 6:26am
    #1
    Banned (with Prison Access) Posts: 583 ✭✭✭


    Hi all
    Is Vat included in Turnover in a companies financial statements?
    Thanks


Comments

  • Registered Users, Registered Users 2 Posts: 172 ✭✭djdeclan


    No, turnover (as with all items in the financial statements) is shown ex. VAT
    The amount due to/from the collector general is shown in the balance sheet as a debtor or creditor.


  • Moderators, Sports Moderators Posts: 19,708 Mod ✭✭✭✭slave1


    Is VAT not included in say, trade receivables balances in the B Sheet?


  • Registered Users, Registered Users 2 Posts: 1,163 ✭✭✭hivizman


    slave1 wrote: »
    Is VAT not included in say, trade receivables balances in the B Sheet?

    When a sale is made on credit, the customer's account is debited with the amount of the invoice including VAT, and sales is credited with the amount of the invoice excluding VAT. The VAT on the invoice is credited to the VAT account. At the end of the period, trade receivables consist of amounts due from customers (which thus include relevant VAT). Any VAT on sales not covered by VAT on purchases and not yet paid over to the tax authorities represents a liability.

    IAS 18 Revenue makes it clear that amounts collected by an entity on behalf of others are not included as revenues of the entity. This includes sales taxes such as VAT that are charged on sales and ultimately paid over to the government.

    Some public companies disclose both the VAT inclusive and the net revenues, but turnover strictly should just include the revenues net of VAT.


  • Registered Users, Registered Users 2 Posts: 40 meangene


    very interesting


  • Registered Users, Registered Users 2 Posts: 5,245 ✭✭✭myshirt


    meangene wrote: »
    very interesting

    Very straight forward more than very interesting.


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