Help! Is Gross Value Added the same as Gross Profit??

Flosspot
Flosspot Registered Posts: 23 New contributor 🐸
in General student discussion
I have 4 years of company accounts before me and a form asking for the Gross Value Added? I'm stuck :001_unsure:

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  • ExcelAnt
    ExcelAnt Registered Posts: 80 Epic contributor 🐘
    Two second google seach hit:

    Over-simplistically, GVA is the grand total of all revenues, from final sales and (net) subsidies, which are incomes into businesses. Those incomes are then used to cover expenses (wages & salaries, dividends), savings (profits, depreciation), and (indirect) taxes

    So GVA is Revenue. Revenue being sum total of all income.

    Gross profit is revenue less direct costs such as materials and direct labour costs

    Note both of these are Net of VAT.

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