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VAT (Default surcharge)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › VAT (Default surcharge)

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Tax Tutor.
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  • Author
    Posts
  • August 28, 2020 at 1:24 pm #582492
    mazai
    Participant
    • Topics: 1
    • Replies: 9
    • ☆

    Kaplan Revision Book FA2019: Knight Ltd., page 193

    Task (Extract): Knight Ltd. was late in submitting the following VAT return and in paying the related VAT:
    Return Period VAT due
    3 months ended 31/12/2017 20,000
    3 months ended 30/09/2019 30,000
    3 months ended 30/6/2020 21,000
    All of the company’s other VAT return have been submitted on time, and the related VAT liabilities have been püaid on time.

    Answer (which I understand)
    The late payment for the quarter ended 30/09/2019 —> a surcharge liability notice up to 30/9/2020.
    The late payment for the quarter ended 30/06/2020 —> 2%*21,000 = 420 and surcharge period extended to 30/6/2021.

    Answer (which I don’t understand, can you please explain this sentence below?):
    The late submission for the quarter ended 31/12/2017 IS IRRELEVANT, as it was followed by the SUBMISSION of FOUR (?) consecutive VAT returns on time.

    August 30, 2020 at 10:13 pm #582793
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    It would appear then that you have not studied your study notes and lectures – see study manual page 148, chapter 25 section 7, note (f)

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    Posts
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