VAT Flashcards
How do you calculate stamp duty on paper based transfer of shares?
0.5% PLUS you round it up to the nearest £5
On paperless agreements you don’t round
How much VAT do you charge on sales to VAT registered customers in other EU countries?
0%
How much VAT would you charge to non-VAT registered customers in Belgium?
20%
Can you reclaim input tax on cars?
No, it’s blocked
If you gift a property to someone do they have to pay stamp duty?
No, UNLESS you are transferred a debt with it too (a mortgage), if so, you must pay SDLP on the mortgage value.
What VAT do you pay on any supplies to countries outside the EU?
Zero
What rate of VAT can a residential landlord charge tenants?
You can’t
The flat rate scheme for VAT is open to traders with annual taxable supplies up to how much?
£150k
If the business has total annual income (including VAT and exempt supplies), they must leave the scheme.
When can you reclaim VAT on services prior to registering for VAT?
When the services were rendered within the six months prior to registration.
When can you reclaim VAT on goods bought before you registered for VAT?
If they were purchased in the four years before registration for business purposes and they are still in hand at date of registration
How is a ‘single supply’ defined for VAT?
When one part of the supply is merely incidental, ancillary or a means of better enjoying the main element.
How is multiple supply defined for VAT purposes?
When the elements are separate and clearly identifiable but have been invoiced together at an inclusive price for both elements. You would account for this by splitting the total in a fair and reasonable manner.
What reasons are there to bot have entities in a VAT group?
If you make zero rated supplies, then you would lose the monthly cash flow from claiming back VAT
If you are not controlled by the main entity in the group, you cannot be in a VAT group - control is >50% ownership
You cannot be in a VAT group if you do not have a permanent establishment in the UK
Why would you want to be in a VAT group?
Saves on time and admin
Intragroup supplies needn’t account for VAT
