Chapter 3 Flashcards
If the VAT incurred relating to exempt supplies is below a certain amount what is this called ?
De minimis limit
To qualify for the de minimis limit the input tax relating to the exempt supplies must be no more than ________ and less than __% of the total input vat in the period
A) £625 B) 50%
Can Input VAT be claimed back on business entertainment ?
No
Can Input VAT be claimed back on employee entertainment ?
Yes
What vehicles can businesses claim VAT on all of the time ?
Commercial vehicles: Vans, Lorries & Tractors
What % of VAT can a business usually claim when it leases a vehicle ?
50%
What does the fuel scale charge allow businesses to do ?
Reclaim all the VAT charged on fuel
What does the fuel scale charge go off of ?
The Co2 emissions of the vehicle
If supply is being made to a business customer the place of supply is treated as……
The place where the customer is located
If supply is being made to a non-business customer, the place of supply is treated as…….
The place where the supplier is located
What is a reverse charge in terms of VAT ?
A reverse charge is where the business charges VAT to itself but also claims it, this is usually done when trading internationally
What is ‘Residual input tax’ ?
Input tax of goods or services that are for exempt and VAT rated purposes
If a business claims VAT on a car they have bought what do they have to do when selling it ?
Charge VAT
What is an asset that is used for business purposes but also personally ?
A mixed use asset
To claim input VAT on goods imported internationally, what does the business need as evidence ?
Import VAT statement
