VAT - Basics Flashcards
1
Q
What is VAT chargeable on?
A
The sale of taxable supplies by a taxable person
2
Q
What is a taxable supply?
A
Any supply of goods or services made in the UK, other than exempt supply or supply outside the scope of VAT
3
Q
Who is a taxable person?
A
A sole trader, partnership, limited company, club or association making taxable supplies
4
Q
Who is intended to suffer the burden of VAT?
A
Consumers
5
Q
When would businesses suffer from VAT?
A
If they cannot reclaim it
6
Q
Why would a business not be able to reclaim VAT?
A
A business cannot reclaim VAT either because they are not VAT registered or because the purchase relates to an item you cannot reclaim VAT on e.g entertaining UK customers
