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TC REVISH > VAT > Flashcards

VAT Flashcards

1
Q

VAT historic registration: When to notify and when registered for period end 31 Mar?

A

Period end 31 Mar, notify 30 Apr, registered 1 May

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2
Q

VAT future registration: When to notify and when registered?

A

Notify end of 30d period, registered from beginning of 30d period

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3
Q

VAT pre-registration recovery

A

Goods on hand: 4y
Services: 6m

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4
Q

VAT deregistration: Stops making taxable supplies: When notified & when deregistered?

A

Notify 30d, deregistered when stopped making the taxable supplies

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5
Q

Voluntary VAT deregistration: When notified and when deregistered?

A

When expected supplies under OBT 83 for next 12m (can’t be temporary drop)

Deregistered on date of request (can be any time because voluntary)

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6
Q

What do you have to do when deregistered for VAT?

A

There is a deemed supply of business assets over 1k

Unless sale/incorporating business

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7
Q

VAT irrecoverable debt

A

Can claim VAT back if 6m old

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8
Q

Is business entertainment expense VAT recoverable?

A

NO

Unless 100% business
Or Staff
Or foreign customers

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9
Q

Are cars VAT reocverable?

A

NO

Unless 100% business

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10
Q

Is (proprietor) private use recoverable?

A

NO

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11
Q

VAT refund time limit

A

4y

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12
Q

Can an employee or sole trader recover VAT on fuel bought for private use?

A

YES

BUT output OBT SCALE CHARGE!

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13
Q

Can you recover VAT on the repairs of cars with negligible business use?

A

YES

As long as any business use

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14
Q

VAT return electronic payment deadline

A

1m7d

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15
Q

Is VAT in MTD

A

Yes

Unless voluntary registration under threshold

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16
Q

What’s it called when HMRC come to check your VAT?

A

Control visit

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17
Q

Is there any help you can get if you make a lot of VAT recoverable purchases?

A

Monthly returns

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18
Q

What is the higher limit for VAT and what do you have to do if you hit it?

A

2.3m
(Liab, any 12m)

Monthly submission

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19
Q

When is a VAT invoice due?

A

30d from tax point

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20
Q

What is the penalty called when you don’t submit VAT or the return on time?

A

Default surcharge (OBT)

21
Q

How long is the VAT default surcharge period?

A

12m

22
Q

Error in VAT return: Under deminimis

A

Deminimis = 1% turnover 10-50k

OBT penalty but no interest

Can submit on next return

23
Q

Error in VAT return: Over deminimis

A

Deminimis = 1% turnover 10-50k

OBT Penalty and interest

Have do disclose on separate form

24
Q

Error in VAT return: Found in control visit

A

OBT Penalty and interest

(Not disclosed because HMRC have already found out :D)

25
Q

When is annual accounting scheme VAT due?

A

2m after end of year

26
Q

What is annual accounting VAT shcheme?

A

One annual RETURN

But TEN payments

27
Q

VAT annual accounting scheme payments

A

TEN payments
First 9 monthly at the end of the year (10% prev year VAT)
Balancing payment at VAT return

(Can choose to pay quarterly if too many payments aha)

28
Q

What do you have to do as a flat-rate VAT business when selling to another VAT registered business?

A

Still need to send a VAT invoice

29
Q

Group VAT registration requirement

A

Common control (3p)

UK resident

30
Q

VAT on output to oveseas

A

Zero rated (no VAT!)

31
Q

VAT on input from overseas

A

No VAT paid

But put as input & output on return

32
Q

VAT: Goods vs Services

A

Goods:
1. Hire purchases
2. Power/ heat/ cooling/ ventilation/ water
3. Bus asset gifts (not samples/ under £50)

Services:
1. Hiring goods
2. (Free) use of bus assets for non bus use
3. Restaurants

33
Q

How to deal with partially exempt traders?

A

**Do simple tests 1&2*
Failed?
a. Calculate input tax relating to exempt supplies (proportion non-attributable)
b. apply test 1 to the input tax relating to exempt supplies

34
Q

Who can be part of a VAT group? (need 50% control)

A

Companies
Pships
Sole traders

35
Q

VAT on property: Sale of bare land

A

EXEMPT

36
Q

VAT on property: Sale of a residential building

A

EXEMPT

37
Q

VAT on property: Sale of an OLD commercial building (+3y)

A

EXEMPT

38
Q

VAT on property: Lease of building

A

EXEMPT

39
Q

VAT on property: Sale of constructed residential building

A

ZERO RATED

40
Q

VAT on property: Sale of converted bulding

A

ZERO RATED

41
Q

VAT on property: construction of commercial building

A

STANDARD RATED

42
Q

VAT on property: Sale of NEW commercial building (3y)

A

STANDARD RATED

43
Q

Chargability of VAT on property rules

A
  1. Old? Exempt
  2. Commercial? Standard
  3. Constructed or converted? Zero

Otherwise exempt (resid, land, lease)

44
Q

What can you option to tax and what does it mean?

A

(OLD) COMMERCIAL BUILDINGS

a. recover input
b. charge output on lease (rent & premium) and sale within 20y

45
Q

Difference with VAT for imports deadline?

A

Can account for in next VAT return (not when duty paid to release goods)

46
Q

VAT: Services to non-business overseas customers?

A

Charge VAT

47
Q

What to not forget about the VAT car fuel scale rate?

A

It’s MONTHLY

48
Q

Two things to remember about the VAT flat rate scheme?

A
  1. 1% deduction that year if joined in first year or registration
  2. Limited Cost Businesses (OBT)
49
Q

When to use VAT reverse charge system?

A

Receiving services from business abroad

TC REVISH (7 decks)

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