AAT L3 Indirect Tax (UK VAT) 6

Question 1

The threshold for compulsory VAT deregistration is triggered when taxable turnover is expected to fall below:

Accepted Answer

The registration threshold

Answer

£73,000

Answer

£83,000

Answer

£88,000

Question 2

Disbursements for VAT purposes are:

Accepted Answer

Expenses incurred by a business and recharged to clients at cost with no VAT markup, where specific conditions are met

Answer

All expenses recharged to clients

Answer

Expenses that are always subject to VAT

Answer

A type of import VAT adjustment

Question 3

For the purposes of the VAT retail schemes, a retailer making mixed-rate supplies uses these schemes to:

Accepted Answer

Calculate output VAT without having to identify the VAT liability on every individual sale

Answer

Avoid filing VAT returns

Answer

Reclaim input VAT more easily

Answer

Pay a fixed annual VAT amount

Question 4

Which of the following is a consequence of issuing a VAT invoice when NOT VAT-registered?

Accepted Answer

The issuer commits a criminal offence and HMRC may demand the VAT shown

Answer

HMRC will automatically register the business

Answer

The recipient can reclaim the VAT shown

Answer

A penalty of £200 is charged

Question 5

For a partly business, partly private use asset, a business can recover VAT on:

Accepted Answer

Only the business use proportion of the VAT

Answer

The full amount, with no restrictions

Answer

Nothing — mixed use assets are blocked

Answer

All input VAT and then account for output VAT on private use

Question 6

The VAT registration number format in the UK is:

Accepted Answer

A 9-digit number with the prefix GB

Answer

A 10-digit number with the prefix UK

Answer

An 8-character alphanumeric code

Answer

A 12-digit number allocated by Companies House