Friday Quiz - 23/11/18 - Quiz & Trivia

1. Traditionally, what colour is the 'filling' in the middle of an Oreo cookie?

Blue

Brown

Pink

White

2. True or False: Anchor can reclaim all the VAT that it pays out

True

False

When you charge VAT on a product, you are entitled to claim back any VAT that you paid for goods and services that went into the selling of that product. So businesses that only sell products that have VAT on them can reclaim all the VAT that they pay in the course of their business. However, businesses like Anchor make lots of sales that are exempt from VAT - both care services and domestic rent are exempt supplies. As such, Anchor are unable to reclaim any of the VAT that they paid on goods or services that went towards the provision of care or housing services.

If you'd like more information on this somewhat complicated area, please just get in touch with the tax team - we'd be happy to discuss it over a biscuit or two!

Explanation

When you charge VAT on a product, you are entitled to claim back any VAT that you paid for goods and services that went into the selling of that product. So businesses that only sell products that have VAT on them can reclaim all the VAT that they pay in the course of their business. However, businesses like Anchor make lots of sales that are exempt from VAT - both care services and domestic rent are exempt supplies. As such, Anchor are unable to reclaim any of the VAT that they paid on goods or services that went towards the provision of care or housing services.

If you'd like more information on this somewhat complicated area, please just get in touch with the tax team - we'd be happy to discuss it over a biscuit or two!