Assumptions Report No. 6 - Sales & Related Taxes

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Guidance on Entering Assumptions > Assumptions Report No. 6 - Sales & Related Taxes

This assumptions report concentrates on input and output taxes, for example, sales taxes in the US, Goods & Services Tax (GST) in Canada and Value Added Tax (VAT) within the EU. Its facilities should be flexible enough to accommodate most types of input and/or output taxes for most tax regimes either individually or in combination.

Specify descriptive term for sales or input/output tax:
Enter a short description or use an abbreviation, e.g. "sales tax", "GST", “HST” or "VAT", and press the F9 function key to update descriptions embedded in remaining rows of this report and all other locations within Exl-Plan. Note that the description will default to “VAT “ (UK/International edition) or “Sales tax” (US/Canadian edition) if the description cell is left empty.

Average output tax rates on sales (%):
When entering the output tax (sales taxes, GST, VAT etc.) rates, use composite or weighted average rates to take account of mixed rates, exports etc. The rates used need not correspond to official rates.

Average input tax rate for purchases of materials/packaging & goods (%)
Percent of all other non-payroll expenses (operating exs etc.) subject to input taxes (%)
Average input tax rate for non-payroll expenses (%)
Percent of capital expenditure and disposals subject to input taxes (%)
Average input tax rate for these items (%)
These input taxes refer to GST, VAT etc. which apply in Canada, EU etc. No input taxes operate in the US and consequently these items can be ignored (set to zeros) by US-based businesses.

Estimate approximate percentages and rates. Use weighted average rates to take account of expense categories using different rates. For most businesses, the percentage of non-payroll expenses subject to input taxes are likely to exceed 90% as these taxes are usually payable on almost all types of expenses. The entered tax rates need not coincide with official published rates.