Calculating turnover of sales and purchases
The turnover of sales is the total of the amounts received or
receivable (excluding VAT charged separately) in respect of the sale
of goods, less the amount refunded to a purchaser in respect of
goods returned, within six months of the date of the sale.
Similarly, the turnover of purchases is the total of the amounts paid
or payable (excluding VAT charged separately) in respect of the
purchase of goods less the amounts repaid to you in respect of
goods you return, within six months of the date of purchase.
Credit notes and debit notes
If the sale price, or the purchase price, of any goods is varied and
either a credit note or a debit note is issued, then the credit note or
the debit note, as the case may be, should
• show, separately, the tax and the price
• be accounted for in the period in which the appropriate entries
are made in your accounts.
Special cases
Auctioneers
If you are an auctioneer, you must include in your turnover, the
price of the goods you auction for your principal.
Hotels
There are special rules for hotels and other establishments that
provide boarding and lodging for an inclusive amount.
The rules provide a formula to enable you to calculate your turnover
of sales for meals (food and beverages) you provide.
The supply of food in a restaurant also includes an element of
service. But the full amount charged is the sale price for the
purposes of calculating turnover and tax.
Written by admin on September 11th, 2011 with comments disabled.
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