Accounting for VAT Flashcards
1
Q
Circumstances where an invoice showing a tax amount should not be raised?
A
supply isn’t a taxable supply
by a person not registered
2
Q
Penalties for raising invoice with tax charge yet no tax is chargeable?
A
amount showing becomes payable
3
Q
Records to be kept by registered person
A
tax invoice credit notes debit notes customs entry payment receipt for customs tax amounts charged on each supply made or received tax account stock records
4
Q
Penalties for not keeping proper records?
A
Higher of
10% of the tax payable
KES 100,000
5
Q
Documents to be maintained for the supply
A
6
Q
Documents to be maintained for the supply of services?
A
amount of tax charged evidence to identify supplier and recipient nature and quantity of services supplied time of supply place of supply consideration for supply serial number of the invoce
7
Q
Details of tax invoice?
A
words "tax invoice" name, address and pin of supplier and recipient serial number of invoice date description of goods discount allowed consideration for supply tax payable
8
Q
formula for determining VAT payable?
A
VAT = t*[a/(1+t)
