Example-VAT with Many Taxes
XYZ Company produced alcohol, cigarettes/cigars and other products in Cambodia. During October 2020, Company produced and sold the following products:
- -Beers of $22,000 ( excluded any taxes)
- -Wines of $11,000 ( excluded any taxes)
- -Cigarettes/cigars of $1,100 ( excluded any taxes)
- -Drinking water of $2,200 ( excluded any taxes)
- -Gazed soft drink of $3,300 ( excluded any taxes)
- – Other goods of $5,000 ( excluded any taxes)
Required:
- Calculate specific tax
- Calculate Public lighting tax (PLT)
- Calculate VAT
- Calculate total selling price
Answer
Wine, beers, Cigarettes/cigars are subject to Public lighting tax (PLT), and they are subject to specific tax too .
1.Calculate Specific Tax ( read more Specific tax @ http://www.cambodiataxation.com/courses/specific-tax/)
- Specific Tax for Beers =$22,000 x 90% x 30%=$5,940
- Specific Tax for Wines=$11,000 x 90% x 35%=$3,465
- Specific tax for Cigarettes/cigars=$1,100 x 90% x 20%=$198
2. Public lighting tax (PLT) ( read more PLT @ http://www.cambodiataxation.com/courses/public-lighting-tax/)
- Tax base =( amount excluded taxes + specific tax ) x 100% =(22000+11000+1100+5,940+3,465+198) x 100%= $43,703
- Tax rate = 3%
- Public lighting tax (PLT)= Tax Base x 3% =$43,703 x 3%=$1,311
3. VAT
Tax base = amount exclude taxes + any taxes except VAT=(22000 + 11000 + 1100 + 2200 + 3300 +5000)+(5940+3465+198+1311)=$55,514
Tax rate = 10%
VAT = Tax base x 10% =$55,514 x 10% =$5,551.4
4. Total selling price
Total Selling price = amount excluded taxes + any taxes = 55,514 + 5,551.4 = $ 61, 065.4