VAT Quiz On Buying And Selling Goods In The UK, Eu And Overseas
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When a non-VAT registered UK trader sells goods to a EU VAT registered trader it must charge VAT
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True
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False
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About This Quiz
This VAT Quiz tests understanding of VAT rules for UK businesses engaging in transactions within the EU and overseas. It covers scenarios like despatches, exports, and VAT charges, essential for compliance and financial planning in business.
Quiz Preview
- 2.
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:
- 3.
When a UK VAT registered trader buys goods from a non-EU trader, the non-EU trader charges VAT
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True
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False
Correct Answer
A. FalseExplanation
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 returnRate this question:
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- 4.
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
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True
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False
Correct Answer
A. FalseExplanation
There would be no VAT in this scenario as the trader is not VAT registered and cannot charge VATRate this question:
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- 5.
When a UK Business sells goods to a non-EU country it must charge
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20% VAT
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5% VAT
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0% VAT
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These are exempt sales
Correct Answer
A. 0% VATExplanation
Always zero rated because VAT is a tax on goods used in the UK.Rate this question:
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- 6.
When a UK VAT registered business sells goods to a EU VAT registered business, it must charge VAT at
Correct Answer
zero rate
0%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:
- 7.
When a UK VAT registered trader sells goods to a non-VAT registered EU trader it should not charge VAT
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True
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False
Correct Answer
A. FalseExplanation
The trader must always charge VAT in this scenarioRate this question:
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- 8.
When a UK business sells goods to another EU business this is called a
Correct Answer
DespatchExplanation
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:
- 9.
Explain the process of how a UK VAT registered trader must account for VAT on goods bought from a VAT registered EU trader
Quiz Review Timeline (Updated): Mar 18, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 18, 2023Quiz Edited by
ProProfs Editorial Team -
Nov 20, 2016Quiz Created by
MiffBiz
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