L-3 Tax

Vat paid by a business on purchases and expenses is called

• Input Tax

• Output tax

• Sales Tax

• Income Tax

Changes in VAT regulation take effect on a specified date

• True

• False

Registration threshold is

• £85,000

• £83,000

An unregistered trader can never have a VAT liability to HMRC

• True

• False

Traders making only exempt supplies can register for VAT

• True

• False

Businesses sending and receiving invoices electronically require approval from HMRC

• True

• False

Simplified invoice is issued if total amount of the supply does not exceed £250

• including VAT

• excluding VAT

If seller issues credit note then it reduces output tax for

• Customer

• Seller

A pro-forma invoice is a valid tax invoice

• True

• False

A business that makes annual sales of £92,250 including reduced rate vat

• Needs to register

• No need to register