What is VAT an abbreviation for in the context of taxation?

• Variable Allocation Tax

• Value Added Tax

• Volume Added Tax

• Verification Allocation Tax

Which of the following best describes VAT?

• A consumer tax charged on goods and services

• A direct tax on individual income

• A business tax charged on profits

• A payroll tax on employees

What must businesses do if they are required to charge VAT?

• They must reduce the amount of VAT they charge each year

• They must only record VAT on international transactions

• They must keep records, account for, and pay amounts collected to HM Revenue & Customs

• They must charge VAT only on services, not goods

What is the VAT Registration Threshold amount as of 1 April 2024?

• £80,000

• £90,000

• £100,000

• £110,000

Which of the following is NOT a reason for a business to voluntarily register for VAT?

• To sell zero-rated goods and services

• To avoid paying any VAT on purchases

• To handle significant start-up costs

• To sell to other VAT-registered businesses

When must businesses register for VAT online?

• When their VAT Taxable Turnover in the past 12 months exceeds the VAT Registration Threshold

• When they start employing more than 50 people

• When they begin exporting goods internationally

• When they open a second business location

What is a benefit of registering for VAT when selling zero-rated goods?

• The business can avoid all forms of taxation

• The business can claim back VAT on standard-rated purchases

• The business can increase its product prices

• The business can deregister for VAT sooner

What is the standard VAT rate as of 2023 for most goods and services?

• 5%

• 20%

• 0%

• VAT is not applicable

Which of the following items is charged at a reduced VAT rate?

• Children's clothes

• Motorcycle helmets

• Domestic fuel and power

• Books

What does zero-rated mean in terms of VAT?

• VAT is charged at a higher rate

• No VAT is charged, but items are still VAT taxable

• VAT is fully exempt

• VAT can be reclaimed on these items