Hey Mompreneurs,
I found out that for some people, it’s hard to remember how to compute for VATable sales and Tax.
I suggest that you print this in a piece of paper and always ask your employees to check on it before writing on the official receipt or invoice.
For example the total amount is Php 6,000
Compute for VATABLE SALES:
Php 6,000 / 1.12 = Php 5,357.14
Compute for Value Added Tax or VAT Amount:
Php 5,357.14 x 0.12 = Php 642.86
To make sure the computation is correct, add Vatable sales and Value Added Tax and the answer should be the TOTAL AMOUNT.
Hope this helped!
