Add tax to the item price
%Removal of tax from the price of a commodity
( Pre-tax principal )
%Calculating the tax due during the month to the government
%
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Tax rate calculator
Tax definition:
The tax has many types, and the definition of tax is the monetary amount received by the state from institutions, companies, and people with the aim of financing state expenditures for all sectors that pay it, such as (education - health insurance - and others).
Or they support certain goods, sectors, or countries' infrastructure, such as building dams, bridges, roads, or unemployment insurance.
It varies from time to time and from country to country.
How does the tax rate calculator work?
In this tool, the tax is added to the price of the product or thing through which money is used in a way that we add the tax rate in the country if it is in pounds, dinar, riyal, dollar, or any currency, according the town.
For example:
for US dollars
The tax rate is 21%, and the juice price to be added is $200
The tax is the product of 200 * 1.21 = 242 dollars
This tax calculator focuses on three ways to make the calculation as follows:
1- Adding a tax to the item price.
2- Removing the tax rate from the price of the commodity
3- Calculate the tax due to the government during the month.
We will explain these three methods clearly as follows:
1- Adding tax to the price:
You can do this process by:
- Enter the tax rate in your country.
- Enter the original price of the item excluding tax.
Such as:
The tax rate in your country is 25%
The price of the item that will be added to the tax is $7000.
Tax is the result of multiplying the value-added tax rate by one in the price of the good
meaning of:
8000 * 1.25 = 10000
This calculation is very useful for the trader to know how much he or she will sell his item for after adding tax to it.
2- Removing the tax from the item price:
This process is carried out through:
- Enter the tax rate in your country.
- Enter the total price of the item that has been taxed.
Tax is removed from the price by subtracting the tax rate from the item price.
This is done by stripping the price of the VAT item and returning it to its base price without tax.
For example:
If the tax in your country is 25%.
The item price, including tax, is 10,000.
This tool divides the price of an inclusive tax good by the tax rate added to each good.
meaning of:
10000/1.25 = 8000
Then you get the item's price before adding tax to it.
This calculation is also called the original price before taxes calculation or the original amount before taxes calculation.
3- Calculating the tax due to the government during the month:
This operation is performed by entering the following:
- Tax rate in your country.
- Total sales during the month.
- Total purchases during the month.
Total sales:
Total tax sales invoices issued by your company during the month.
Total Purchases:
The total of all tax purchase invoices you received when you purchased goods and supplies for your business during the month.
If your sales are more than your purchases, you must pay the government, but if your sales this month are less than your purchases, the government must pay you the difference or put the difference in your tax service credit, and if the government pays you, this is called a value-added refund.
It is known that taxes are paid to government agencies by individuals, institutions, and companies on a monthly or annual basis, depending on the type of tax, and failure to pay taxes and submit a tax return exposes the citizen to legal accountability and may be subject to a penalty.
Therefore, you must pay the tax at the time it is due, i.e. before the last specified day for payment so that you are not subject to any legal liability.
State utility of tax rate calculator:
This tool helps to complete tax calculations of all kinds to know how much you will sell the product in order to add the tax to it.
The tool can also remove the tax from the price of the item, strip it from the value-added tax price, and return it to its base price
What is the main purpose of the tax?
The main purpose of the tax is the following:
Break the tax objective into four smaller objectives
1. Allocate resources
2. Income redistribution
3. Getting rid of inequality in people's home
4. Achieving economic stability
What is the purpose of the tool?
This tool aims to change the tax rates in the system to match your country, whether you are a foreigner or an Arab
Therefore, the method for calculating the 20% tax is the same as for calculating taxes for any other percentage. All we have to do is change the percentages in the box shown to them.
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