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maxpopper
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Sisters, berth and Army whitlock trade as a pertnership
1) Partnership has been registered for VAT many years and on 1 Jan 2019 it began using flat rate scheme to calculate amount of VAT payable.Relevant flat rate scheme percentage for partnership trade is 13%
2) For quarter ended 31 March 2019 partnership has standard rated sales of 50000 and exempt sales of 10000. For the same period standard rated expenses amounted to 27300. All figs are stated inclusive of VAT.
Now there is an MTQ which says that whether the following statement concerning VAT is true or false
Vat must still be charged on standard rated sales invoices at rate of 20%
They have marked this statement as true. I could not understand this , can you please explain that why this statement is true?
Tax Tutor
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Makes no sense – the VAT to be paid in your example above would be:
(50,000 + 10,000) x 13% = 7,800
maxpopper
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Sorry in the question it is that whether the following statement concerning VAT flat rate scheme is true or false
Vat must still be charged on standard rated sales invoices at rate of 20%
They have marked this statement as true. I could not understand thisTax Tutor
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OK I now see what you mean – it is not the calculation of the VAT but the administration of the system in terms of what is shown on the sales invoice issued to the customer.
A VAT invoice must still be issued to customers and VAT at the rate of
20% is still charged on standard rated supplies thus allowing the customer, if VAT registered to reclaim the correct amount of input VAT
Hope this now explains
Tax Tutor
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