Value Added Tax
Automatically calculate, track and file VAT
Automatically calculate VAT for the 160+ countries required to collect and submit.
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.
Easily file tax returns with local and federal authorities.
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.
"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."
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Manage your company’s entities or subsidiaries in one system without logging in and out of other databases.
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