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VAT

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which item will not be regarded as a Zero rated item.

a)

Bread

b)

Fruit and Vegitables

c)

Milk and milk products

d)

Meat

2.

Who will be liable for the full amount of VAT?

a)

Consumer

b)

Business

c)

Government

d)

Producer

3.

Which item from the list will be exempt of VAT?

a)

Bread

b)

School fees

c)

Sanitary towls

d)

Electricity

4.

VAT stands for

a)

Very Autocratic Triangle

b)

Virtual Appliance technology

c)

Very Artistic Teacher

d)

Value Added Tax

5.

VAT is a tax on

a)

Income

b)

Company profit

c)

Death

d)

Spending

6.

You must register your business for VAT with HM Revenue and Customs (HMRC) if its VAT taxable turnover is more than

a)

£100,000

b)

£85,000

c)

£8,500

d)

£75,000

7.

When completing a VAT return the following supplies are included:

a)

Exempt supplies

b)

Standard rate supplies

c)

Out-with the scope supplies

d)

Zero-rated supplies

8.

A trader who sells zero rated goods is still able to reclaim input tax suffered when calculating his liability?

a)

True

b)

False

9.

An exempt trader is able to recover the tax suffered on his inputs?

a)

True

b)

False

10.

Insurance is an example of a:

a)

Standard rated item

b)

Zero rated item

c)

Outwith the scope item

d)

Exempt item

11.

Transport is an example of a:

a)

Exempt item

b)

Reduced vat item

c)

Standard rated item

d)

Zero rated item

12.

Box 1 on the VAT return records:

a)

VAT due

in this period on acquisitions from other EC Member States

b)

VAT reclaimed in this period on purchases and

other inputs (including acquisitions from the EC)

c)

VAT due

in this period on sales and other outputs

d)

Total VAT due

13.

Box 4 on the VAT return records:

a)

VAT due

in this period on sales and other outputs

b)

Total value of purchases and all other inputs

excluding any VAT.

c)

VAT reclaimed in this period on purchases and

other inputs (including acquisitions from the EC)

d)

Total value of all supplies of goods and related

services, excluding any VAT, to other EC Member States

14.

If Box 3 on the VAT return is greater than Box 4 does the business have a VAT liability or are they due a refund?

a)

VAT Liability

b)

VAT refund due

15.

You usually submit a VAT Return to HM Revenue and Customs (HMRC) every 'accounting period'. This period of time is every:

a)

1 month

b)

1 year

c)

3 months

d)

3 weeks