VAT Flashcards
what are classed as zero rated supplies
food, water, books, transport
what are taxed at the reduced rate of 5%
mobility aids, domestic fuels, renovation/alteration of dwellings
how much VAT is payable when a solicitor supplies insurance
this is an exempt supply
how much VAT is payable when a solicitor supplies legal services
standard rate supply (20%)
when is a supply made of goods / services for VAT purposes
services - when they are complete
goods- when removed
unless tax invoice supplied within 14 day (law firms 3 months) then date of invoice or invoice/payment made before supply then supply is date of invoice or payment
is input tax an expense
not for a person making taxable supplies
can a person recover tax if they make both taxable and exempt supplies
they can recover a portion of tax - they are partially exempt
can exempt supplies ever be ignored for the purposes of recovering tax
exempt supplies under de Minimis amount can be overlooked.
what is tax invoice evidence of
evidence of the right to recover tax
when must you provide a tax invoice
when a taxable person makes a taxable supply to another taxable person
how long do you have to produce a tax invoice
30 days
how long do you have to submit a completed return and pay VAT to HMRC
1 month after end of quarter
(Accurate!)
how to calculate tax to account to HMRC
total output tax LESS deductible input tax
who is required to keep a VAT account
all taxable people. keep one for each tax period
do you charge VAT on disbursements
no
conditions to treat a payment as a disbursement
acted as client’s agent when paying it
client received / used goods of third party
client was responsible for paying but authorised you to pay on their behalf
client knows service / goods provided by third party
recover only exact amount
goods/services addition to your supply
what is not a disbursement
items that are normally and necessarily part of the service
concessionary treatment of counsel agreed by HMRC
can change fee note so it is addressed to client. it is then treated on the agency basis. keep copy of amended fee note for costs assessments.
