Input and output tax

Input VAT on the following goods and services cannot be recovered:

Select correct 2 answers.

• Most forms of business entertaining.

• Purchase cars for private use

• Purchase cars used 100% for business purposes

• VAT on entertaining overseas customers

In general a business cannot recover input VAT on entertaining. However, there are some cases where VAT on entertaining can b e recovered. Select two correct answers .

• Employee entertaining (e.g. staff parties, staff outings)

• VAT on entertaining UK customers

• VAT on entertaining overseas customers

• VAT on staff party relate to non-employees

Puck's business is VAT-registered and supplies goods that are a mix of standard and exempt. Which of the following statement is true?

Choose one answer.

• None of the input VAT can be reclaimed

• Input VAT on items used to make exempt supplies can never be recovered

• Some of the input VAT can be reclaimed, in proportion to the different types of supply

• All of yhe input VAT can always be reclaimed

Jerry is confused about the difference between making zero-rated and exempt supplies. He makes the following statement:

Traders who make only exempt supplies cannot register for VAT.

TRUE OR FALSE?

• True

• False

Jerry is confused about the difference between making zero-rated and exempt supplies. He makes the following statement.:

TRADERS WHO ONLY MAKE ZERO-RATED SUPPLIES HAVE TO REGISTER FOR VAT.

TRUE OR FALSE?

• TRUE

• FALSE

Jerry is confused about the difference between making zero-rated and exempt supplies. He makes the following statement:

Trders making only exempt supplies cannot recover input tax.

TRUE OR FALSE?

• True

• False

Donne runs a business in which 70% of her sale are taxable supplies and 30% exempt supplies.

She divides her input tax into three parts: that relating to taxable supplies, that relating to exempt supplies, and that relating to overheads.

Select which of the following statements is true. (one)

• Only the input tax relating to taxable supplies can be recovered

• All of the input tax relating to taxable supplies can be recovered. It is also possible to recover 70% of the input tax relating to exempt supplies and overheads provided this amount does not exceed a de minimis figure

• Recoverable input tax can only comprise that relating to taxable supplies plus 70% of the relating to overheads

• It is possible to recover all the input tax provided that the tax relating to exempt supplies plus 30% of the input tax relating to overheads does not exceed the de minimis figure

Luigi's business is VAT-registered and supplies goods that are a mix of standard-rated and zero-rated.

Which of the following statements is true?

Choose one answer.

• None of the input can be reclaimed

• All of the input VAT can be reclaimed provided certain conditions are met

• Some of the input VAT can be reclaimed, in proportion to the different types of supply

• All of the input. VAT can be reclaimed

Forte runs a manufacturing business which makes only standard-rated supplies. During March the business incurs expenditure of £890 on staff entertaining, £456 on UK customer entertaining and £9150 on a second hand VAN. All figures include VAT at 20%.

• £1,749.33

• £1,673.33

• £1,601.00

• £2,008.00

Hooch Ltd is a VAT-registered business. The sales manager is provided with a company car and fuel which he uses for both business and private purposes.

The car has CO2 emissions of 155g/km for which the quarterly fuel scale charge is £310. Petrol paid for by the company for the car in the last quarter amounted to £ 822.50. Both figures are VAT-inclusive.

What is the net effect of these on Hooch Ltd's VAT for the quarter?

• VAT payable increases by £105.50

• VAT payable increases by £85.42

• VAT payable decreases by £85.42

• VAT payable decreases by £188.74