Indirect Tax - AAT Practice Assessment

Gocer
Gocer Registered, AAT Student Posts: 19 New contributor 🐸
in Indirect Tax
Hey everyone,

Can someone help me with the attached vat return answer for box 2 and 4. Thank you

Best Answer

  • Pian32
    Pian32 MAAT Posts: 474 Dedicated contributor 🌟 🐵 🌟
    Answer ✓
    No problem. I'll answer anyway incase others are confused.

    You divide by 5 as the value for EU purchases is VAT exclusive. If it was VAT inclusive you'd divide by 6
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL -
    SBR - Passed Mar 22
    ATX - Passed Dec 21
    APM - Passed June 22
    Gocer

Answers

  • Pian32
    Pian32 MAAT Posts: 474 Dedicated contributor 🌟 🐵 🌟
    Box 2 includes EU purchases (as the buyer both would be liable for the VAT and can reclaim it)

    1784.65/5 = 356.93

    As mentioned you also reclaim the VAT on the EU figure for Box 4

    356.93+994.94=1351.87

    Hope that helps
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL -
    SBR - Passed Mar 22
    ATX - Passed Dec 21
    APM - Passed June 22
    Gocer
  • Gocer
    Gocer Registered, AAT Student Posts: 19 New contributor 🐸
    Why divide this by 5 Pian?
  • Gocer
    Gocer Registered, AAT Student Posts: 19 New contributor 🐸
    Please ignore my previous comment. Thank you so much for the answer. Really appreciate your help and time :)

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