Dear tutor, would you please help me on this question.
In the first year of trading to 31 December 2013 Scott's taxable turnover was £ 5000 a month. For the first seven months of 2014 his turnover was as follows:
January 2014............................7400
February 2014...........................8100
March 2014...............................8300
April 2014.................................9100
May 2014..................................9700
June 2014.................................9200
July 2014..................................9300
you have advised Scott that he is compulsorily required to be registered for VAT.
From what date will Scott be registered for VAT under compulsory registration?
A ) 30 July 2014; B) 1 August 2014; C) 30 June 2014; D) 1 July 2014
the answer is B.
many thanks
Ask the Tutor ACCA TX-UK
vat registration
I am not the tutor, but maybe I can help you,
Scott became liable to VAT registartion (compulsory) in June 2014. This is the month when taxable supplies in the 12 months period exceeded the limit: £81.000. He has to register from the end of the month, following the month in which this limit is exceeded. Therefore he will be registered from 1 August 2014.
thank you for your response, but my confusion is that first year of trading to 31 December 2013 totally is 12 x 5000=60,000, and plus January 2014 7400, February 2014 8100 and March 2014 8300, so my answer is 1 May 2014, would you please help me further?
many thanks
You have included 15 months in your calculation instead the 12 months period. The limit is exceeded in June 2014, when the taxable supplies for the 12 months period were 81.100.
Have you worked the OT Course Notes AND watched the lectures as I think many of the questions you are asking would have been answered within the lectures!
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