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VAT Clarification – Historical vs Future Turnover

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › VAT Clarification – Historical vs Future Turnover

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by JillyB.
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  • April 23, 2023 at 4:24 pm #683397
    kibby
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Practice Question 33: Kite Ltd- Based on the sales forecast, Kite would have exceeded $85,000 at the end of Feb 2023, however the historical turnover concept was applied in the answer. Why not the future turnover since Kite would have projected that sales would exceed $85,000 by the end of Feb 2023? Consequently be registered effective Feb 01, 2023? I’m a little confuse in this regard, your feedback will be appreciated.

    April 24, 2023 at 9:57 am #683439
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    You are correct – the sales at the end of Feb are over the limit. The rules on page 182 – future turnover have been applied and the answer is correct

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