Value Added Tax

Automatically calculate, track and file VAT

Collect

Automatically calculate VAT for the 160+ countries required to collect and submit.

Track

Track the tax on the value of the product, less any of the costs of materials used in the product that have already been taxed.

Submit

Easily file tax returns with local and federal authorities.

 

VAT Calculation

Assume VAT is 10%

Company Description Cost of Goods VAT Total Cost of Goods Who Pays the VAT to the Government VAT Payment Amount
Farmer Farmer sells wheat to a Baker 20 Cents 2 Cents 22 Cents Farmer 2 cents
Baker Baker makes bread with the Wheat and sells to the Supermarket 60 Cents 6 Cents 66 Cents Baker 4 cents
Supermarket Supermarket sells the bread to the Customer 90 Cents 9 Cents 99 Cents Supermarket 5 Cents
Total Amount the Government Receives in VAT 11 Cents

Simplified VAT process

Unlike a Sales Tax, a Value Added Tax (VAT) is a consumption tax placed on a product when value is added at each step of the supply chain. If your business is in one the 160 plus countries around the world using value-added taxation, Gravity Software® (Gravity) VAT calculations has you covered. Gravity tracks the tax on the value of the product, less any of the costs of materials used in the product that have already been taxed. Gravity’s Tax Reports makes it easy to file tax returns with local and federal authorities. Save your business time with Gravity’s automated VAT calculations. Gravity will calculate the amount of tax required so you can easily file your returns.

Michelle-Keckler-The-Smile

"If you’re a small to medium size business who does or does not need multi-entity functionality and you’re looking for an accounting solution with hardly any restrictions, you HAVE to consider Gravity Software."

Michelle Keckler, Accounting Coordinator
The Smile


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