Chapter 2 Flashcards

1
Q

When must a VAT registered business send a VAT invoice to its purchaser ?

A

Within 30 days of the earlier of the date of supply or receipt of payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What invoices are not VAT invoices ?

A

Invoices that are for zero-rated or exempt supplies only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When can a simplified VAT invoice be issued to a buyer ?

A

When the VAT inclusive amount charged is £250 or less

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What can a simplified invoice NOT include ?

A

VAT exempt supplies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a modified invoice ?

A

A VAT invoice but also includes the vat inclusive price of the products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a basic tax point for goods ?

A

The date that the business despatched the goods to the customer or the customer collects them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the basic tax point for services ?

A

The date that the service is carried out or the date when all the work is completed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the actual tax point 14 day rule ?

A

If an invoice is issued within 14 days of the basic tax point, the invoice date becomes the actual tax point

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the actual tax point for advanced payments?

A

The earlier of: The date the VAT invoice is issued OR the date the business receives the advance payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the actual tax point for deposits ?

A

The earlier of: The date a VAT invoice is issued for the deposit OR the date the deposit is received

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Can you use a pro-forma invoice as evidence to reclaim VAT ?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does HMRC allow businesses to do in terms of VAT rounding ?

A

It allows them to round down the total amount of VAT payable on an invoice down to the nearest penny

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

If an invoice has a trade discount what does HMRC require you to do when calculating the VAT ?

A

Calculate the VAT after the trade discount has been deducted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a tax point ?

A

The date on which the supply is recorded for the purposes of the VAT return

How well did you know this?
1
Not at all
2
3
4
5
Perfectly