5. Value Added Tax Flashcards
1
Q
Two distinct aspects of VAT
A
- Output Tax (registered business charges this to their customers)
- Input tax (charged to the business by the suppliers)
2
Q
Current standard rate of VAT
A
20%
3
Q
What falls into the ‘reduced rate’ category of VAT
A
Domestic Fuel and children’s car seats taxed at 5%
4
Q
Are legal services ‘exempt supply’?
A
No, they are subject to VAT at the standard rate
5
Q
Definition of ‘taxable person’
A
A person must register if, broadly, the value of taxable supplies (not profit) in the preceding 12 months exceeded a figure specified in each year’s Budget (£90,000 for 2024/25)
6
Q
Can a non-taxable person register for VAT voluntarily ?
A
Yes
7
Q
A
