Calculating VAT
When you enter an invoice amount into Earnings Tracker, you enter the net amount (before VAT is added). Earnings Tracker then calculates the amount of VAT to be added to the invoice.
The software also calculates how much VAT is payable to Customs & Excise if you are working through the VAT Flat Rate Scheme.
How does the VAT Flat Rate Scheme work?
A detailed example of how the VAT Flat Rate Scheme works is given at the following address:
http://www.dixondevelopment.co.uk/wordpress/?p=19
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