AAT L3 Indirect Tax (UK VAT) 3

Question 1

A VAT invoice must include which of the following details?

Accepted Answer

A unique sequential invoice number, the supplier's VAT registration number, and a description of the supply

Answer

The customer's date of birth

Answer

The supplier's bank account details

Answer

The customer's National Insurance number

Question 2

Acquisition of goods from another EU country by a UK business after Brexit is treated as:

Accepted Answer

A UK import — import VAT and customs duty may be due

Answer

An intra-community acquisition subject to the reverse charge

Answer

Zero-rated European purchases

Answer

Exempt from all UK taxes

Question 3

If a VAT-registered business issues a credit note to a customer, the effect on the VAT return is:

Accepted Answer

Output VAT decreases (a VAT credit is applied)

Answer

Output VAT increases

Answer

Input VAT increases

Answer

No effect on the VAT return

Question 4

When is a business required to compulsorily register for VAT?

Accepted Answer

When taxable turnover in the previous 12 months has exceeded the registration threshold

Answer

When it starts trading

Answer

When it employs more than five staff

Answer

When it starts making exempt supplies

Question 5

Which of the following is an anti-avoidance rule related to VAT?

Accepted Answer

The Halifax principle — use of structures to gain a VAT advantage that is contrary to the purpose of VAT legislation

Answer

The partial exemption rules

Answer

The DIY housebuilder scheme

Answer

The flat rate scheme

Question 6

For UK VAT, the place of supply of services to a business customer (B2B) is generally:

Accepted Answer

Where the customer is established

Answer

Where the supplier is established

Answer

Always the UK

Answer

The place where the service is physically performed