Chapter 1: Introduction to VAT Flashcards
1
Q
what is output VAT?
A
VAT on sales and other outputs
2
Q
what percentage is standard-rated VAT?
A
20%
3
Q
who suffers the full amount of VAT?
A
the final consumer
4
Q
is VAT a direct or indirect tax?
A
indirect
5
Q
what percentage is reduced-rated VAT?
A
5%
6
Q
can you reclaim VAT on zero-rated purchases/ supplies?
A
yes
7
Q
can you reclaim VAT on exempt purchases?
A
no
8
Q
how do you calculate the amount owed to/ recieved from HMRC?
A
output tax - input tax
