VAT Quiz On Buying And Selling Goods In The UK, Eu And Overseas

Approved & Edited by ProProfs Editorial Team
The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.
Learn about Our Editorial Process
| By MiffBiz
M
MiffBiz
Community Contributor
Quizzes Created: 3 | Total Attempts: 3,085
Questions: 9 | Attempts: 202

SettingsSettingsSettings
VAT Quiz On Buying And Selling Goods In The UK, Eu And Overseas - Quiz

.


Questions and Answers
  • 1. 

    Explain the process of how a UK VAT registered trader must account for VAT on goods bought from a VAT registered EU trader

  • 2. 

    When a UK business sells goods to another EU business this is called a 

    Explanation
    When a UK business sells goods to another EU business, this is referred to as "despatch." Despatch is a term used to describe the process of sending or delivering goods from one place to another. In this context, it signifies the movement of goods from the UK to an EU country as part of a business transaction.

    Rate this question:

  • 3. 

    A UK business which sells goods to a non-EU business has made an

    Explanation
    The correct answer is "Export". In this scenario, a UK business is selling goods to a non-EU business. When a business sells goods to a buyer located outside of its home country, it is considered an export. In this case, since the buyer is located outside of the EU, it qualifies as an export transaction.

    Rate this question:

  • 4. 

    When a UK VAT registered business sells goods to a EU VAT registered business, it must charge VAT at

    Explanation
    When a UK VAT registered business sells goods to an EU VAT registered business, it must charge VAT at zero rate or 0%. This means that no VAT is added to the price of the goods. This is because the sale is considered an export, and exports are generally zero-rated for VAT purposes. The zero rate allows for the free movement of goods within the EU and promotes trade between member states by eliminating the burden of VAT on cross-border transactions.

    Rate this question:

  • 5. 

    When a non-VAT registered UK trader sells goods to a EU VAT registered trader it must charge VAT

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    If a trader is not VAT registered it cannot charge VAT

    Rate this question:

  • 6. 

    When a UK Business sells goods to a non-EU country it must charge 

    • A.

      20% VAT

    • B.

      5% VAT

    • C.

      0% VAT

    • D.

      These are exempt sales

    Correct Answer
    C. 0% VAT
    Explanation
    Always zero rated because VAT is a tax on goods used in the UK.

    Rate this question:

  • 7. 

    When a UK VAT registered trader sells goods to a non-VAT registered EU trader it should not charge VAT

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The trader must always charge VAT in this scenario

    Rate this question:

  • 8. 

    When a UK VAT registered trader buys goods from a non-EU trader, the non-EU trader charges VAT

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    No VAT is charged by the trader. The UK trader has to pay the correct UK VAT rate when the goods arrive at the airport or port. They can reclaim this input VAT on their VAT return

    Rate this question:

  • 9. 

    When a UK VAT registered trader buys goods from a EU non-registered trader they should add the appropriate rate of UK VAT to the cost of the purchase

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    There would be no VAT in this scenario as the trader is not VAT registered and cannot charge VAT

    Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 18, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Nov 20, 2016
    Quiz Created by
    MiffBiz
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.