VAT Quiz 2

1. Reverse VAT from a gross amount

An invoice shows a gross total of £600.00 at 20% VAT.

2. Add VAT to a net amount

Goods are sold for a net price of £275.00. VAT is 20%.

3. Work from the VAT figure

The VAT on a sale is £48.00 at 20%.

4. Mixed VAT: taxable, zero-rated and exempt

In one invoice, a business charges:

• Consultancy: £500.00 (20% VAT)
• Training: £300.00 (exempt)
• Printed books: £60.00 (0% VAT)

5. Trade discount, then VAT, plus non-VATable delivery

Goods list price: £520.00 net
Trade discount: 15% on the goods only
Delivery (0% VAT): £25.00
VAT on goods: 20%

6. Deposit based on a gross price

A quote is given at £960.00 gross, including 20% VAT.
The customer pays a 40% deposit.

7. VAT return – VAT payable

For a quarter, a business has:
Net sales at 20% VAT: £18,000.00
Net purchases at 20% VAT: £6,000.00

All figures are at the standard 20% VAT rate.

8. Work backwards from gross takings

A shop only sells goods at the 20% VAT rate.
The till shows gross takings for the day of £9,000.00.

9. Partial exemption – reclaimable VAT

A business has in a period:
Taxable sales: £12,000.00
Exempt sales: £3,000.00
Purchases: £4,000.00 net plus VAT at 20%.

They can only reclaim the proportion of input VAT that relates to taxable sales.

10. Margin scheme – VAT on the margin

A second-hand dealer buys an item for £220.00 and sells it for £310.00 under the VAT Margin Scheme (20% VAT).
VAT is due on the margin only, using the VAT fraction 1/6.