Chapter 3 Flashcards
1
Q
What is a partial exemption?
A
When a business sells both taxable and exempt goods input tax has to be calculated
2
Q
What is blocked input tax?
A
when VAT can be reclaimed due to being used as genuine business expense
3
Q
What is a Standard accounting scheme?
A
vat to be reported every 3 months- refund is given quarterly
4
Q
What is an Annual accounting scheme?
A
- only used if turnover is less than 1.35 million
5
Q
What is a cash accounting scheme?
A
- can only reclaim VAT when paid by the customer and only pay VAT when paid
6
Q
What is a flat rate accounting scheme
A
- turnover has to be under 150k- the VAT percentage depends on the type of business
7
Q
What is a margin scheme?
A
taxed on profit
8
Q
What is the VAT retail scheme?
A
VAT should be recorded on every sale
