How to sell goods with VAT paid without VAT

VAT is a tax that is payable by each entrepreneur and organization involved in the sale of any goods and services. Often, owners of retail chains purchase goods from suppliers without a VAT margin. And in the future, according to the law, they will have to pay this sales tax. In other words, to sell goods with VAT purchased without this margin is unprofitable, but quite realistic.

You will need

Calculator, checks and invoices for the purchase of goods without VAT.

Instruction manual

1

Determine the initial value of the goods. So, the goods are purchased from the supplier without a VAT surcharge. Look in the relevant documents, what is its cost. Let's say the purchase cost the company 100 rubles.

2

Calculate the VAT on the goods. On the goods it is necessary to calculate the VAT in the amount of 18% of the initial value of the goods. Simplified tax regimes exempt the taxpayer from paying VAT on the goods sold, so he is not entitled to apply extra charges in the form of VAT. And if the company operates on VAT, management is required to pay the full amount of VAT. In the above example, VAT will be equal to:

(120 * 18%) / 100% = 21.6 rubles Thus, the VAT that was calculated on the goods is 21.6 rubles.

This means that the cost of goods sold including VAT (cost of goods purchased from the supplier + VAT) will be equal to:

120 + 21.6 = 141.6 rubles.

3

Add a trade margin. Let the margin for this type of product be 30%. Then the final cost of the goods (future revenue from the sale of this product) is calculated as:

141.6 + 30% = 184 rubles 08 kopecks.

4

Transfer VAT. After the sale of goods to the budget, it will be necessary to transfer the value added tax, equal to 18%:

(184.08 * 18%) / 100% = 33 rubles 13 kopecks.

5

Calculate the profit of the enterprise. The final profit of the enterprise is calculated, which is equal to the revenue minus the tax paid and the cost of the goods that was purchased from suppliers.

184.08 - 33.13 - 120 = 30 rubles 95 kopecks. Thus, the higher the margin, the more profitable it is to sell goods purchased without VAT. Those enterprises that operate under the basic tax regime and pay VAT on a mandatory basis, as a rule, do not work with supplier organizations that operate on other (simplified) taxation systems.

note

With organizations working on the simplified tax system, those enterprises that regularly pay VAT are often refused to cooperate. This may ultimately affect the profit of the supplier selling their goods without VAT.

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