Hi Hasan.

I'm a bit confused regarding your statements about 50% Recoverable Tax payable to Tax Authorities.
Example:
You collect $100 in taxes from Customers.
You pay to Vendor $20 in taxes.
You are allowed 50% recoverable tax.
I would have thought you are allowed to use 50% of the amount PAID to offset the amount COLLECTED from customers.
Example:
$100 collected in taxes
$20 paid in taxes
Therefore at 50% tax recovery you can claim only $10.

Hence, $100 - $10 = $90 is what is still owing to the Tax Authorities by YOU.
.
In your example you have the following..
Collect $100 in taxes
Paid $20 in taxes
Difference = $80
Now at 50% Recoverable tax rate
you only need to pay $40...
.
.

Am I correct... or way off base... thanks

Charlie

No, looks like you are not way off base. I might be.
The term recoverable rate is used for recovery of tax paid on purchases, irrespective of the tax we have collected.
So your example looks good. My example seems wrong.
I have to revisit my videos to see what I am talking about and will fix it.
Thanks for pointing it out.