VAT Quiz Questions And Answers
(487).jpg "VAT Quiz Questions And Answers - Quiz")
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!
- 1.What does Anchor input tax relate to?
- A.
Purchases
- B.
Sales
- C.
Profit
- D.
None of the above
- 2.How long are the VAT periods Anchor and its subsidiaries submit returns for (select all that apply)?
- A.
Four weeks
- B.
One month
- C.
Three months
- D.
One year
- 3.What is Anchor’s typical partial recovery rate on VAT?
- A.
0-5%
- B.
5-10%
- C.
20-25%
- D.
50%
- 4.What is the VAT treatment of insurance and why?
- A.
Exempt - a different indirect tax is payable on insurance
- B.
Exempt - charities don't pay VAT on insurance
- C.
Outside scope - a different indirect tax is payable on insurance
- D.
Outside scope - insurance is compulsory, so not taxable
- E.
Standard - it's a normal service, so taxable
- 5.What is the most common rate of VAT on Anchor’s sales?
- A.
Exempt
- B.
Outside scope
- C.
Standard
- D.
Zero
- 6.What is the most common rate of VAT on Anchor’s purchases?
- A.
Exempt
- B.
Outside scope
- C.
Standard
- D.
Zero
- 7.Can Anchor’s housing customers recover the VAT they pay on invoices with standard rated VAT?
- A.
Yes
- B.
No
- 8.What is the VAT rate on Jaffa Cakes?
- A.
Exempt
- B.
Outside scope
- C.
Standard
- D.
Zero
- 9.Why doesn’t Anchor pay VAT on invoices for bulk mobile phones?
- A.
Bulk purchases of mobile phones are zero rated for charities
- B.
Bulk purchases of mobile phones are exempt from VAT
- C.
Bulk purchases of mobile phones are subject to the domestic reverse charge – VAT is paid direct to HMRC
- D.
The tax team reduce our costs by missing things off the VAT return
- 10.If a regular supplier stops charging VAT for VATable goods and services, what does Anchor need to do?
- A.
Nothing, it is the supplier’s responsibility to account for their own VAT
- B.
Report them to HMRC
- C.
Check with the supplier – there might be a valid reason
- D.
Keep adding VAT to what we pay them
- 11.What VAT rates might be payable on a deposit (select all that apply)?
- A.
Exempt
- B.
Outside scope
- C.
Standard
- D.
Zero
- 12.What options are available to HMRC if Anchor make mistakes on their VAT return (select all that apply)?
- A.
A slap on the wrist (suspended penalty)
- B.
Penalty fines
- C.
Interest on unpaid amounts
- D.
Imprison Sarah Jones
Featured Quizzes
Back to top