Subject specific to travel agents, the calculation of the VAT on Margin is necessary in the quotations.

Here are the formulas we use:

  1. Gross Margin = Selling price incl. VAT - Purchase price incl. VAT
  2. VAT on Margin = Gross Margin - Gross Margin / 1 + VAT rate

In order to delve deeper into the subject, we have written a more complete article :

How to manage the VAT of a travel and/or event agency? Blog article

If you still have a doubt, do not hesitate to exchange with our team in the chat of your space πŸ˜„.

πŸ“ Related articles :

How are the different Margins calculated?

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