formula of sale tax and value added tax
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The formula for calculating the sales tax on a good or service is: selling price x sales tax rate and when calculating the total cost of a purchase, the formula is: total sale amount = selling price + sales tax.
Output VAT = It is a tax charged on the sale of goods. It is charged on the selling price of the goods. Input VAT = It is the tax paid on the purchase of goods. It is paid at the cost price of the goods.
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