Vat Flashcards
What are the 3 types of vat
Standard 20%
Reduced 5%
Exempt 5%
What are reduced rate items for vat
Fuel
Children’s car seats
What are 0 zero rated items for vat
Food
Books
Children clothes
What is exempt from
Vat
Insurance
Education and training
Fund raising events
ALL OUTSIDE THE VAT SYSTEM
Tax point what is it
When vat must be charged
What is tax point for goods
When you send goods to the customer
What is tax point for services
When services are performed = basic tax point
When is basic tax point overridden
Overridden by actual tax point
When is actual tax point before basic tax point
When a VAT invoice is raised or payment is made before services performed
Actual tax point = date when invoice is issued or payment received whichever occurs first
What is the 14 day rule ?
Issue a vat invoice within 14 days of basic tax point
Date of invoice = actual tax point and overrides basic tax point.
If no invoice issued within 14 days or after 14 days what happens ?
Tax point is date of actual supply.
When must a company register for vat ?
Uk turnover for previous 12 months exceeds £85K or if reasonable grounds that value of supply will exceed that figure in the next 30 days alone.
Vat registration must be made within what time period ?
Registration made by end of that 30-day period.
Date of registration is when trader realized value will exceed 85K not when the turnover actually went over
When can trader de-register for vat
Less than £83K annum
