Query: How to calculate VAT on item rate?

Solution:

To calculate VAT on Item rate,

1.     Create a stock Item at specific VAT rate

2.     Create a common purchase or sales ledger.

3.     Create a common VAT duty ledger.

4.     Record a transaction (purchase or sales) using the stock items whose VAT rates are specified at the stock item masters and the VAT rates will be calculated on item rate.