Indirect tax 1

Taxable person is

• HMRC
• Customer
• Client
• Business which is registered for VAT

VAT is

• direct tax
• indirect tax

Business which supply only zero-rated goods

• can register for vat
• cannot register for vat

Business which supply only exempt goods

• can register for vat
• cannot register for vat

Business which supply only zero-rated goods

• can reclaim input tax
• cannot reclaim input tax

Reduced rate of vat is

• 0%
• 5%
• 15%
• 20%

Standard rate of vat is

• 5%
• 10%
• 20%
• 100%

Output tax must be charged on all sales made by a register trader.

• True
• False

Vat paid by a customer on a purchase invoice is treated as which of the following in the supplier's Vat Return?

• Income tax

• Input tax

• Output tax

• Sales tax

A sales invoice for taxable supplies that includes standard rate VAT is being processed by a VAT registered business. What will be the effect of this invoice on the VAT due to be paid by this business to HMRC?

• It will have no effect on the VAT payable by the business.

• It will increase the amount of VAT due to be paid.

• It will decrease the amount of VAT due to be paid.