Article 45 - Calculation of Tax

1) Unless a Taxable Person elects to use the cash accounting basis in accordance with article forty-six of these Regulations, or unless the Taxable Person is supplying Eligible Used Goods in accordance with article forty-eight of these Regulations, the Net Tax payable by a Taxable Person in respect of a Tax Period is calculated by deducting the total Input Tax, including Input Tax on imports, allowed to the Taxable Person during the Tax Period from the total of Output Tax payable in respect of all Taxable Supplies made by the Taxable Person in the Kingdom during the Tax Period. This calculation method is known as the invoice accounting basis.

2) The calculation of Tax on any amount of Consideration in respect of a Supply is made in accordance with the following equation:

Tax = Consideration x Tax Rate
(100% + Tax Rate)
where the Tax Rate is expressed as a percentage.