VAT Quiz 1

VAT Practice Quiz

Enter all answers as numbers only (no £ sign). Round to 2 decimal places where needed.

1. Add VAT to a net amount

A business buys stationery for a net price of £46.20. VAT is 20%.

Correct VAT: 9.24, Gross: 55.44

2. Reverse VAT (gross to net)

The gross invoice total is £354.00 (20% VAT included).

Correct net: 295.00, VAT: 59.00

3. Start from the VAT amount

The VAT on an invoice is £73.40 at 20%.

Correct net: 367.00, Gross: 440.40

4. Mixed VAT rates on a sale

A café sells in one transaction:

  • Coffee: £14.00 (0% VAT)
  • Hot food: £22.00 (20% VAT)
  • Biscuits to take home: £1.50 (0% VAT)
  • Branded mug: £10.00 (20% VAT)
Correct VAT: 6.40, Gross: 53.90

5. Trade discount before VAT

Goods are listed at £640.00 net. A 10% trade discount is given, then VAT is added at 20%.

Correct discounted net: 576.00, VAT: 115.20, Gross: 691.20

6. VAT on a deposit

A customer pays a 30% deposit on an order worth £1,800.00 net. VAT is 20%.

Correct deposit net: 540.00, VAT: 108.00, Gross: 648.00

7. Credit note for an overcharge

You overcharged a client by £75.00 net. VAT is 20%. You issue a credit note.

Correct VAT: 15.00, Total credit: 90.00

8. Split invoice – labour and materials

A subcontractor invoices:

  • Labour: £900.00 (20% VAT)
  • Materials: £450.00 (0% VAT)
Correct net: 1350.00, VAT: 180.00, Gross: 1530.00

9. Work backwards from total VAT

A business only sells goods at 20% VAT. The total VAT on sales for the month is £912.00.

Correct net sales: 4560.00

10. VAT return – amount payable

For the quarter:

  • Output VAT on sales: £3,850
  • Input VAT on purchases: £1,430
  • Bad debt relief claim (reduces VAT due): £200 VAT
  • Credit note issued (reduces VAT due): £85 VAT

How much VAT is payable to HMRC for the quarter?

Correct VAT payable: 2135.00
Tap to show/hide correct answers