How do you calculate VAT on a spreadsheet?

How to Calculate Profitability with Mixed VAT Values?

• Hi. I sell some products on Amazon and have a mixed set of figures (some include VAT, others do not) to work with. I need to work out if my products are profitable or not. Here's a typical set of values: + Sale Price (incl. VAT): £49.95 - Cost of product to me (ex VAT): £25 - Cost of shipping to me (ex. VAT): £3.49 + Shipping charged to customer (incl. VAT): £4.77 - Amazon fees (incl. VAT): £6.71 Is the best way for me to work out profitability to convert all of those figures to EX-VAT (x / 1.2) and then add/subtract from the sale price or…?

• Answer:

  If you are VAT registered then you just ignore all VAT (purchase and sale). If you are not registered for VAT then the purchase VAT just becomes part of your cost price. As you state VAT on sales you must be VAT registered. You should have all your net figures (from your quarterly VAT returns) and thes are the figures used for profit/loss.