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Indirect Tax 1

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

What is the VAT registration threshold for joining?

a)

20%

b)

£83,000

c)

£85,000

d)

Sales / 6

2.

A VAT registered trader's taxable sales are:

a)

All sales made excluding exports

b)

All sales made including imports

c)

All sales above £85,000

d)

All sales apart from exempt sales

3.

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

a)

£360

b)

£250

c)

£240

d)

£280

4.

Are clubs and associations required to register?

a)

Yes, as HMRC considers them a "taxable person"

b)

No, as they are not commercial organisations

5.

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

a)

use the local rate of the EU country

b)

reduced rate for EU of 5%

c)

zero rate out of UK

d)

standard rate of 20% as normal

6.

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

a)

£44.16

b)

£44.17

c)

£53.00

d)

£220.84

7.

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

a)

Business sends goods to customer

b)

Business provides an invoice after 30 days

c)

Business makes the goods available

d)

Customer collects the goods

8.

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

a)

Output tax

b)

Input tax

c)

Standard VAT tax

d)

Consumer tax

9.

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

a)

Dispatches

b)

Imports

c)

Acquisitions

d)

Exports

10.

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

a)

Yes

b)

Yes, provided they are a non-VAT registered trader

c)

Only after 14 days

d)

No