VAT - Taxable Supplies Flashcards
1
Q
What is an example of a supply outside the scope of VAT?
A
Dividend salaries
2
Q
What is an example of an exempt supply?
A
Insurance
3
Q
What are the three types of taxable supply?
A
- zero-rated
- reduced rate
- standard rate
4
Q
What percentage is the zero rate?
A
0%
5
Q
What percentage is the reduced rate?
A
5%
6
Q
What percentage is the standard rate?
A
20%
7
Q
What are some examples of supplies found in the zero rate band?
A
Food, kid’s clothes
8
Q
What are some examples of supplies found in the reduced rate band?
A
Domestic utilities, kid car seats
9
Q
Which supply rates can you reclaim VAT on?
A
zero-rated, reduced rate and standard rate
10
Q
Why is producing exempt supplies negative for a business?
A
They cannot reclaim any VAT they were charged
