V.A.T

What Is V.A.T.? Variable Automatic Transmission Vinculum Arithmetic Taxation Value Added Tax Varying Added Tax

Oooooppps!! Soooooorrryyy! T’was the other one….. Never mind…..nuh fret you hear

VALUE ADDED TAX Value added to a tax? Tax which adds to a value?

VALUE ADDED TAX Value added to a tax? Tax which adds to a value? VALUE OF?

VALUE ADDED TAX Value added to a tax? Tax which adds to a value? VALUE OF? Goods Services

VAT DEFINED VAT or Value Added Tax refers to an addition to the price of a good or service.

VAT DEFINED VAT or Value Added Tax refers to an addition to the price of a good or service. VAT can further be defined as a percentage increase on an item.

VAT DEFINED VAT or Value Added Tax refers to an addition to the price of a good or service. VAT can further defined as a percentage increase on an item WHO RECEIVES THE MONEY FROM VAT?

VAT DEFINED VAT or Value Added Tax refers to an addition to the price of a good or service. VAT can further defined as a percentage increase on an item WHO RECEIVES THE MONEY FROM VAT Consumer Retailer Government

Since it is a tax: ALL TAXES GO TO THE GOVERNMENT. This is done in order for the government to have money to pay for state-provided services, government wages, roads etc.

Since it is a tax: ALL TAXES GO TO THE GOVERNMENT. This is done in order for the government to have money to pay for state-provided services, government wages, roads etc. DO WE HAVE VAT IN JAMAICA? YESNO

YES INDEED! And is called!!

YOUR HALF RIGHT! We don’t have VAT, but we have an identical strategy that has a different name? ANY IDEAS?

IT IS CALLED GENERAL CONSUMPTION TAX! GCT WHO KNOWS THE PERCENTAGE?

IT IS CALLED GENERAL CONSUMPTION TAX! GCT WHO KNOWS THE PERCENTAGE? 15% 17%

IT IS CALLED GENERAL CONSUMPTION TAX! GCT WHO KNOWS THE PERCENTAGE? 15% 17% 16.5% THAT SOUNDS MORE LIKE IT?

SOOOOOO! MILLION $$ ??

HOW DO WE CALCULATE GCT?

Lets Learn! James bought a car for $ He had to pay GCT of 16 ½%. How much tax did he pay? What was the cost of the car including sales tax?

SINCE IT’S A PERCENTAGE 16.5 x 780,000 = 128, Or x 780, 000= 128, 700

SINCE IT’S A PERCENTAGE 16.5 x 780,000 = 128, Or x 780, 000= 128, 700 GCT= $128, 700

AMOUNT WITH GCT Add GCT to Initial Amount 1) 780, ,700 = 908, 700 OR

AMOUNT WITH GCT Add GCT to Initial Amount 1) 780, ,700 OR 2) 1 represents the initial value, anything times 1 is itself. The GCT value is.165 Thus total value = TRY IT!

AMOUNT WITH GCT 1.165x780, 000 = $908,700

But what if you were given the FINAL PRICE OF AN ITEM? How could you find the GCT alone?

But what if you were given the FINAL PRICE OF AN ITEM? How could you find the GCT alone How would you find the Price of the item alone?

Lets Learn! Using the example before: Car final price =$908, 700 What would you do?

Lets Learn! Using the example before: Car final price =$908, 700 What would you do? Multiply then Add Divide then Subtract

Oooooppps!! Soooooorrryyy! T’was the other one….. Never mind…..nuh fret you hear

That’s CORRECT!!! Very Good! We would Divide then subtract in this way. 908,700 /1.165= 780,000 What’s this?

That’s CORRECT!!! Very Good! We would Divide then subtract in this way. 908,700 /1.165= 780,000 That’s gives us our Base Price of our item! 980, ,000= 128,700 What’s this??

Beautiful! Our Base price =780,000 Our GCT=128,700 FINAL PRICE=$908,700

LETS REVIEW What is Vat?

LETS REVIEW What is VAT? Value Added Tax What is it called in Jamaica?

LETS REVIEW What is VAT? Value Added Tax What is it called in Jamaica? General Consumption Tax (GCT) Who uses VAT or GCT and for what?

LETS REVIEW What is VAT? Value Added Tax What is it called in Jamaica? General Consumption Tax (GCT) Who uses VAT or GCT and for what? Government. For Public Services, (Healthcare, Roads, Food Import etc) Wages etc.

THAT’S ALL FOLKS!!! Oh, Ask any questions HERE!!!