Is Your Job Profit Real? Why Transport Profit Must Be Worked Out Before VAT
· 4 min read
A transporter invoices a customer TZS 18,500,000 for a round trip to Lubumbashi, plus 18% VAT: TZS 21,830,000 in total. The diesel cost TZS 4,104,900. What did the job make?
If you answered TZS 17,725,100, you counted the VAT as income, and you are not alone: many job sheets and spreadsheets do exactly that. The real answer is TZS 14,395,100. The other TZS 3,330,000 was never yours; it is owed to TRA.