There are 4 kinds of VAT calculation schemas in TravelWise:
VAT is already included in the Sell price.
Calculation formula:
Sell price – Sell price/(1+VAT%/100)
OR
Sell price*VAT%/(100+VAT%)
VAT increases the Sell price, as becomes added to it separately.
Calculation formula: Sell price*(VAT%/100)
VAT is already included in the Sell price.
Calculation formula: Profit (i. e. commission)*VAT%/(100+VAT%)
VAT increases the Sell price, as becomes added to it separately.
Calculation formula: VAT%/100*Expense price
(correspondingly to the above mentioned schemas):
Common conditions:
Sell price = 200,
Expense = 100,
VAT 25%
1.
Full amount included = Sell price – Sell price/(1+VAT%/100) = 200-200/(1+25/100) = 200-160 = 40
OR
Full amount included = Sell price*VAT%/(100+VAT%) = 200*25/(100+25) = 200*0,2 = 40
Sell Price w/o VAT = 200-40 = 160
2.
Full amount added = Sell price*(VAT%/100) = 200*(25/100) = 50
Sell Price with VAT = Sell price + VAT amount = 200 + 50 = 250
Sell Price w/o VAT = 200
3.
Margin included = Profit*VAT%/(100+VAT%) = (Sell price-Expense price) *VAT%/(100+VAT%) = (200-100)*25/(100+25) = 20
Profit = 100
VAT = 20
Sell Price w/o VAT = 200-20 = 180
4.
Margin added = VAT%/100*Expense price = 25/100*100 = 25
Sell Price with VAT = 200+25 = 225
Sell Price w/o VAT = 200
Profit = Sell w/o VAT – Expense price = 200-100 = 100