Does the Income Statement Include VAT?

Here is a clarification on whether the income statement report includes VAT.

The answer:

A statement that shows revenue from sales, deducts expenses and costs from it, so that you get your net profit or loss.

It helps you know:

• Are you making a profit or a loss?

• How much profit did you make from sales during the period?

• What are the items that affect your profit?

Here are some notes about the report:

• The income statement report shows values excluding VAT.
• To find out the VAT amount, you can review the VAT account statement from the reports.
• You can also view the tax sales invoices report and tax purchase invoices to learn details about VAT related to sales and purchases.