VAT - FLAT RATE (3%)

### Results

 VAT/NHIL/GetFund Payable:
 Compositions
 VAT Component (12.5%):
 NHIL Component (2.5%):
 GetFund Levy Component (2.5%):

### Notes to VAT Flat Rate Scheme (VFRS)

 1) Computing the VAT payable under the VFRS
 (A) Cost Price of Item
 (B) Input NHIL [2.5% x (A)]
 (C) Input GetFund Levy [2.5% x (A)]
 (D) Input VAT [12.5% x [(A) + (B) + (C)]]
 (E) Total Cost [(A) + (B) + (C) + (D)]
 (F) Margin Eg. [ 10% x (E)]
 (G) Taxable Supply [(E) + (F)]
 (H) Output Tax [ 3% x (G)]
 (I) Tax Payable
 (J) Cost to Consumer [(G) + (H)]
 2) Extracting the Tax from the Inclusive Amount
 Where the price quoted by taxpayers is the final prices being sold to consumers ie. vat-inclusive, the vat component can be derived by applying the fraction (3/103) From the example above, to extract the tax component, we apply the following: (3/103) x =
 3) Splitting the Tax Amount into VAT, NHIL & GetFund Levy
 The 3% flat rate comprises VAT, NHIL and GetFund Levy To obtain the VAT component, apply (5/7) to the tax amount. From the example above, to extract the VAT component: (5/7) x =
 To obtain the NHIL component, apply (1/7) to the tax amount. From the example above, to extract the VAT component: (1/7) x =
 To obtain the GetFund Levy component, apply (1/7) to the tax amount. From the example above, to extract the VAT component: (1/7) x =