VAT Tax Points Quiz

Julia runs a VAT-registered business selling knitwear. On 4th May she receives an order from a customer for a handmade sweater. The work is completed and, on 15th June, the sweater is delivered. On 20th June, Julia issues a tax invoice. The customer makes payment on 28th July. What is the tax point?

• 4th May

• 15th June

• 20th June

• 28th July

Julia supplies a shop with some of her handmade sweaters on a sale or return basis. She receives an order for six sweaters on 2nd June and sends them to the shop on 4th June. On 16th August she hears from the shop that they have sold all of the sweaters so she issues a tax invoice on the 18th August. Julia received the payment on 17th September. What is the tax point?

• 2nd June

• 4th June

• 16th August

• 18th August

• 17th September

Mohammed is a VAT-registered trader who sells kitchen appliances. On 17th October he raises a pro-forma invoice in advance of making a supply of goods. Payment is received from the customer on 20th October and the goods are delivered on 24th October. A VAT invoice is sent to the customer on 31st October. What is the tax point?

• 17th October

• 20th October

• 24th October

• 31st October

Kanlyani runs a VAT-registered business providing building services. She received an order from a customer on 13th January, provided the service on 24th January and issued a tax invoice on 29th January. The customer made payment for the service on 6th February. What is the tax point?

• 13th January

• 24th January

• 29th January

• 6th February

Reeds Ltd is a VAT-registered company which sells musical instruments. A deposit is received from a customer on 16th April. The goods are delivered on 24th April and a VAT invoice is sent on 4th May. The customer settles the balance on the invoice on 2nd June. What is/are the tax point(s)?

• 16th April

• 24th April

• 4th May

• 2nd June

Reed Ltd also supplies musical instruments to the local council for use in schools and invoices for the service on a termly basis. The invoice for the Spring term was sent on 4th January and paid on 2nd February. What is the tax point?

• 4th January

• 2nd February

• 1st January

• 31st December

Is the following statement true or false? The tax point is always the date of payment if the cash basis is being applied.

• True

• False