Indirect Tax 1

What is the VAT registration threshold for joining?

• 20%

• £83,000

• £85,000

• Sales / 6

A VAT registered trader's taxable sales are:

• All sales made excluding exports

• All sales made including imports

• All sales above £85,000

• All sales apart from exempt sales

A £300 sale was made by a trader inclusive of 20% VAT. What was the net amount?

• £360

• £250

• £240

• £280

Are clubs and associations required to register?

• Yes, as HMRC considers them a "taxable person"

• No, as they are not commercial organisations

What is the VAT rate charged on standard supplies to VAT registered EU customers?

• use the local rate of the EU country

• reduced rate for EU of 5%

• zero rate out of UK

• standard rate of 20% as normal

Correctly calculate the VAT amount form the VAT inclusive amount of £265

• £44.16

• £44.17

• £53.00

• £220.84

Which one of the following does NOT determine the basic tax point?

• Business sends goods to customer

• Business provides an invoice after 30 days

• Business makes the goods available

• Customer collects the goods

The amount of tax charged by a business on taxable supplies is known as

• Output tax

• Input tax

• Standard VAT tax

• Consumer tax

Sales made to EU member states by UK VAT registered businesses are known as:

• Dispatches

• Imports

• Acquisitions

• Exports

A business receives a pro-forma invoice. Can the business use this to make a payment for the goods?

• Yes

• Yes, provided they are a non-VAT registered trader

• Only after 14 days

• No