Understand net amounts, VAT and gross amounts

Read the three amounts

The amount excluding tax corresponds to the price excluding tax. VAT is calculated according to the rate used for the transaction. The gross amount combines the net amount and VAT.

Example of calculation with a chosen rate of 20%: 100 DH excluding tax gives 20 DH tax and 120 DH including tax. The rate to use depends on your operation.

Control discounts

Check if a discount concerns a line or the entire document. Then compare the taxable base and the total, taking into account the costs indicated.

1. Net amount 100 DH
2. Tax at 20% 20 DH
3. Gross amount 120 DH

Keep your input consistent

Use the company's tax settings and the same pricing basis in the catalog and invoice. Spaces between thousands make it easier to read without changing the value entered.

How do you calculate the net amount from the gross amount?

For a line subject to a single rate, divide the gross amount by 1 plus the rate expressed in decimal. Purely arithmetic example: 120 DH including tax divided by 1.20 gives 100 DH excluding tax and 20 DH tax. For several rates, think line by line.

Why check the decimal places of the unit price?

A low unit price can become significant over a large quantity. For example, 0.0223 DH per gram corresponds to 22.30 DH per kilogram. Maintain the precision of the sheet and check the unit rather than replacing this price with a rounded value when entering.