Value added Tax (VAT) is known as Taxe sur la valeur ajoutée (TVA) in france. The tax rates of TVA are categorized into four types. The principal, intermediate, reduced and zero rated. The standard rate increased from 19.6 % to 20 % since January, 2014. The intermediate rate is 10 % as on January 2014. Previously, it was 7 %. This is applicable to travel ticket, restaurant meals, repairing and moderation, wood fuel.
Value added Tax (VAT) is known as Taxe sur la valeur ajoutée (TVA) in france. The tax rates of TVA are categorized into four types. The principal, intermediate, reduced and zero rated. The standard rate increased from 19.6 % to 20 % since January, 2014. The intermediate rate is 10 % as on January 2014. Previously, it was 7 %. This is applicable to travel ticket, restaurant meals, repairing and moderation, wood fuel.
Reduced rate of 5.5 % and 2.1 % for different services. 5.5 % rate is allowed for books, museam, cinema tickets, foods, electricity, gas. 2.1 % is for medical prescription and all other media services.
Find the VAT price and net price in France (GST % is 20) for an amount of 25000 €
Solution :
GST % = 20
Amount = 25000
Step 1 :
GST Price = (25000 * 20 ) / 100
= 5000 €
Step 2 :
Net Price = 25000 + 5000
= 30000 €
Hence the VAT Price is 5000 € and Net Price is 30000 €
Solution :
GST % = 20
Amount = 25000
Step 1 :
GST Price = 25000 - (25000 * ( 100 / (100 + 20)))
= 25000 - (25000 * 0.83)
= 25000 - 20833.33
= 25000 - 20833.33
GST Price = 4166.67 €
Step 2 :
Net Price = 25000 - 4166.67
= 20833.33 €
Hence the VAT Price is 4166.67 € and Net Price is 20833.33 €
Reduced rate of 5.5 % and 2.1 % for different services. 5.5 % rate is allowed for books, museam, cinema tickets, foods, electricity, gas. 2.1 % is for medical prescription and all other media services.
