Indirect Tax Practice CBT question
Devlin
Registered Posts: 24 Dedicated contributor 🦉
Hi I was wondering if anyone could help me get my head around one of the CBT questions for the VAT exam please?
Q. A sequence of events has taken place in a VAT-registered business as follows:
1. It issues a pro-forma invoice on 16 November
2. The customer collects the goods on 21 November
3. The customer pays the pro-forma invoice on 22 November
4. It issues a VAT invoice on the 24 November
What is the tax point of this supply?
Answer: 24 November
I was sure the tax point is the date a payment is received or the date the invoice is issued, whichever is the earlier, which would have made the answer the 22nd of November.
Any help would be appreciated, cheers.
Q. A sequence of events has taken place in a VAT-registered business as follows:
1. It issues a pro-forma invoice on 16 November
2. The customer collects the goods on 21 November
3. The customer pays the pro-forma invoice on 22 November
4. It issues a VAT invoice on the 24 November
What is the tax point of this supply?
Answer: 24 November
I was sure the tax point is the date a payment is received or the date the invoice is issued, whichever is the earlier, which would have made the answer the 22nd of November.
Any help would be appreciated, cheers.
0
Comments
-
As the invoice was provided within 14 days of the supply, you take this date. If the payment had been made before the supply of goods then you would be right.
If you look about half way down the page in the link below, there's quite a useful table.
http://www.hmrc.gov.uk/vat/managing/returns-accounts/tax-points.htm0 -
That's great, cheers for the answer0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 328 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 57 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 275 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 203 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 584 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership