Chapter 3: VAT Documentation

Question 1

How should VAT be rounded on an invoice?

Answer 1

Rounded down

Question 2

What are the types of invoices and which have to be kept?

Answer 2

• Normal & Modified Invoices must always be kept for VAT records
• Simplified Invoices are not always required to be kept by the seller

Question 3

When is the exception for purchase invoices not to be kept?

Answer 3

If the value of the supply is £25 or less and the vendor is VAT-registered, such as vending machine purchases and parking charges

Question 4

When is VAT calculated on discounts?

Answer 4

After the discount is applied

Question 5

What is a proforma invoice?

Answer 5

An offer to supply good or services and a request for a payment before goods are dispatched

Question 6

If an asset is purchased which is used for both business and personal use how is VAT recovered?

Answer 6

The business use percentage is recovered, subject to rules

Question 7

When can you reclaim VAT without needing a VAT invoice?

Answer 7

When the supplies are zero-rated, a VAT invoice is not required in order to claim back VAT