AQ2016-Indirect Tax-Sample exam1-Task2(a)

winterjasmine

Hi Can anyone help me with this task please?

A business makes the following purchases:
standard-rated goods for £110 plus VAT of £22, zero-rated goods of £68.
Which one of the following amounts must appear on the simplified VAT invoice issued to the business?
a)£22
b)£68
c)110
d)£200

The correct answer given by AAT is d)£200

To my understanding , all the number should be on the simplified VAT invoice

Many thanks in advance.

Have a good day :-)

nickyowl

Hi - the word to watch out for is 'must' - the total including VAT must be shown on a simplified VAT invoice, along with the description and rate of VAT for each item, but there is no need to show the individual amounts or the net and vat amounts.

This only applies to simplified invoices (under £250 inc.vat)

winterjasmine

Thank you very much. Yes, you were right. Now I understand. I check the text book again and it says so as well.