VAT Flashcards
When is VAT charged
On a supply of goods or services made in U.K. where it is a taxable supply made by a taxable person in course of business
Who is a taxable person
If their taxable supplies in proceeding 12 months exceed £85k must register for tax
Can you register for tax if you are not a taxable person (less than £85k)
Yes but it is options
If you register you can claim back input tax
Does partnerships register for VAT in name of firm or name of P
Name of firm
What does a VAT number issued by HMRC apply to
To all businesses run by that person
What supplies are exempt
Residential land
Postal services
Health services
Education
Is the disposal of a business of its assets ‘a disposal in the course of business’
Yes
Difference between zero rated and exempt supplies
Neither pay any VAT but zero rated can re-claim VAT they have paid and exempt supply cannot
How long do you have to pay VAT to HMRC
Submit a return to HMRC and pay VAT within 1 month from end of quarter for taxable supplies made that quarter
What sort of liability is incurred by failing to comply with VAT law
Civil and criminal
What is VAT charged on
The value of the supply of goods and services - what they would cost if VAT wasn’t charged
Current VAT rate
20%
What does a VAT invoice show
VAT number
Value of supply
Rate of tax charged
Who must provide a tax invoice
A person making a taxable supply to a taxable person
Who must get a VAT invoice
The person charging VAT must have tax invoice for all the input VaT they are reclaiming
