Deregistration charges
clio
Registered, Tutor Posts: 12
in Indirect Tax
AAT Sample Assessment Question One. A business reached the VAT registration threshold six months ago but did not register for VAT. It has since charged £42,000 to customers for standard-rated taxable supplies.
BPP text book page 19 Section 2.6 Failure to register. Details two ways a business can approach this. Either take sales as VAT inclusive and pay out of profits OR take Sales as VAT exclusive and try to collect from customers.
What in AAT's question tells me that I am to use the first option and not the second?
BPP text book page 19 Section 2.6 Failure to register. Details two ways a business can approach this. Either take sales as VAT inclusive and pay out of profits OR take Sales as VAT exclusive and try to collect from customers.
What in AAT's question tells me that I am to use the first option and not the second?
0
Comments
-
Choosing the second option would mean that they would have to try to claim back the VAT from the customers and the customers would be under no obligation to pay this. So for all the sales worth £42,000 you would treat this as VAT-inclusive and if the business did not invoice it as VAT then they have to bear the cost. So I think you would divide £42,000 by 6 to find out the value of the VAT owed to HMRC0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 259 NEW! Qualifications 2022
- 146 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 37 AAT Level 3 Diploma in Accounting
- 64 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 137 Bookkeeping
- 7.3K General accounting discussion
- 193 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership