Incomplete records - VAT on Sales and Purchases

Inostraj
Inostraj Registered Posts: 2 New contributor 🐸
Hi everyone - I have a question on how to deal with VAT on Purchases and Sales when calculating COS and inventory.
If it states an amount of sales excluding 20% VAT, do I have to add it become calculating COS or do I leave out the VAT completely?

Thank you

Comments

  • anony123
    anony123 Registered Posts: 554 Epic contributor 🐘
    Have you got the question.
  • anony123
    anony123 Registered Posts: 554 Epic contributor 🐘
    Normally things do have VAT on them so divide by 5 and add it to the opening inventory etc. But until I see the question…
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