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Post Info TOPIC: Profit and loss
stella1310


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Profit and loss
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hi, is it right that the sales figure on the profit and loss sheet is inclusive of vat?            do i then add the vat liability to the overheads?



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fabs79


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No - the sales figure on the P/L should not include the VAT. VAT does not appear in the P/L at all, it is either a current asset or a current liability depending on the balance of the 'VAT Liability' ledger.


Fabs

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Richard231


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unless the trading is not vat registered ...

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MarkS


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Sales and Costs are grossed up for VAT if VATinclusive accounts are prepared but generally accounts are VAT exclusive so Sales and Costs will be net of VAT.

Regards

MarkS



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Peasie


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Richard231 wrote:

unless the trading is not vat registered ...

in which case there would be no VAT to include in sales. 



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