CT VAT mechanism & cross-border

Corporation RightKey issues an invoice documenting its sales to retail chain GoodHome. From the perspective of GoodHome the respective VAT represents:

• output VAT

• input VAT

• net VAT due

• VAT deferral

Phase I is subject to 20% VAT while phase II is subject to 10% VAT. What is net VAT due in phase II (yellow cell)

• 0

• 20

• 40

• 80

Phase I is subject to 20% VAT while phase II is exempt from VAT. What is net price in phase II (yellow cell)

• 400

• 420

• 440

• 528

Tax carousel frauds are feasible under:

• VAT source principle

• VAT destination principle

Within carousel VAT fraud scheme a company that is set up for some time, then collects VAT from its buyers but does not transfer VAT to the tax authority is called:

• missing trader

• broker

• buffer

• conduit company

Within carousel VAT fraud scheme a company that requests for a full VAT return:

• missing trader

• broker

• buffer

• conduit company

Missing trader buys a product from abroad at a price of 1100$ (0% VAT applicable). Then the product is sold (10% VAT). Output VAT stemming from this transaction is not transferred to the government. What is the net resale price at which the return on this tax fraud reaches 0.

• 900

• 950

• 1000

• 1050

Under which VAT countermeasure VAT, as a rule, is payed by the buyer instead of the seller?

• reverse charge mechanism

• joint and several liability

• split payment