Tax base of VAT on sale of goods or properties

Sale of goods

Gross sales   xxx (1)
Sales discounts xxx (2)  
Sales returns and allowances xxx (3) xxx
Net sales   xxx
Add Excise tax, if any   xxx (4)
Tax base   xxx


  1. Gross sales include:
    1. Cash sales
    2. Sales on account (open account)
    3. Installment sales
    4. Deemed sales (CR WPD)
    5. Other amounts due from buyer such as for packaging, delivery and insurance.
  2. Sales discount granted and indicated in the invoice at the time of sale and the grant of which does not depend upon the happening of future event may be excluded from gross sales within the same month or quarter it was given.
  3. Sales returns and allowances may be deducted from the gross sales for the month or quarter in which a refund is made or a credit memo is issued.
  4. Excise tax (a business tax), if any, is included in the gross sales, while VAT is excluded.

For the correct answers,  I would like to invite you to join my Facebook exclusive groups of aspiring CPAs for my upcoming project “CPA DREAM ACADEMY ” or sign up for flashcards free

CPA Mentor,



About Jonathan Ruiz CPA

Entrepreneur, CPA Mentor, Stock market Newbie Mentor, Influential Author and Master's Degree in International Business graduate in Hult International Business School, UK. A father of two lovely daughters.
This entry was posted in Taxation and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s