VAT,profit calculation

**IMHO** · 24-Jul-12, 05:20 PM

Which part? How to get the info or how to get the 25% from 20%

**league_of_ordinary_men** · 24-Jul-12, 05:48 PM

How to get the 25% from 20% please.

**IMHO** · 24-Jul-12, 06:00 PM

Remember the formulas of earlier post.

Gross
(Sell-Cost)/Sell x 100

Markup
(Sell-Cost)/Cost x 100

L_O_O_M, give a bit more info on the type and size of business you are in. Otherwise I give too much or too little info, confusing you. Do you sell one line from your garage or do you sell hundreds of lines in a shop?

**league_of_ordinary_men** · 24-Jul-12, 06:22 PM

I am starting an online store with +- 8000 and adding we are almost live so due to being on probation with a supplier.So even thou I get I little confused some time I need to learn this ASAP.And without your help if wouldn't be possible.

**bjsteyn** · 24-Jul-12, 06:38 PM

Originally Posted by league_of_ordinary_men

How to get the 25% from 20% please.

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But to get to your selling price you marked up your product by 25%.

Once you have worked out your GP budget, you can calculate what your markup needs to be.

GP is worked out on selling price, where as markup is worked out on cost price.

Just my two cents.

**IMHO** · 24-Jul-12, 07:25 PM

Well put, bjsteyn. Do you get it L_O_O_M ?

**IMHO** · 24-Jul-12, 08:13 PM

	Incl.	Excl. (ex VAT)	VAT
Sales	119.70	105.00	14.70
Costs of Sales	114.00	100.00
Output VAT			14.70
Gross Profit		5.00 (4.76%)(5% MU)
Expenses		4.00 (3.8%)
Input VAT on COS			14.00
Input VAT on Exp.	2.28	2.00	0.28
VAT Due			0.42
Nett Profit		1.00 (0.95%)