Check out this VAT quiz questions and answers and test your knowledge regarding the taxes. VAT stands for Value-added tax that is levied on services and goods and is assessed incrementally. It is very much important for the overall growth of GDP. The quiz consists of basic questions related to VAT. If you think you can easily secure 100% marks on the quiz below, why don't you give it a try? Best of luck, buddy!
Purchases
Sales
Profit
None of the above
Four weeks
One month
Three months
One year
0-5%
5-10%
20-25%
50%
Exempt - a different indirect tax is payable on insurance
Exempt - charities don't pay VAT on insurance
Outside scope - a different indirect tax is payable on insurance
Outside scope - insurance is compulsory, so not taxable
Standard - it's a normal service, so taxable
Exempt
Outside scope
Standard
Zero
Exempt
Outside scope
Standard
Zero
Yes
No
Exempt
Outside scope
Standard
Zero
Bulk purchases of mobile phones are zero rated for charities
Bulk purchases of mobile phones are exempt from VAT
Bulk purchases of mobile phones are subject to the domestic reverse charge – VAT is paid direct to HMRC
The tax team reduce our costs by missing things off the VAT return
Nothing, it is the supplier’s responsibility to account for their own VAT
Report them to HMRC
Check with the supplier – there might be a valid reason
Keep adding VAT to what we pay them
Exempt
Outside scope
Standard
Zero
A slap on the wrist (suspended penalty)
Penalty fines
Interest on unpaid amounts
Imprison Sarah Jones
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