VAT paid by a taxable person on the purchase of goods and / or services, other than goods or services in respect of which VAT cannot be reclaimed, from another taxable person is known as . . .
Select ONE answer:
- output credits.
- input credits.
- irrecoverable VAT.
- None of the above.
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Incorrect – There is no such thing as output credits – tax payable on supplies / sales is known as output tax.
- Correct
- Incorrect – Irrecoverable VAT is VAT paid which cannot be reclaimed. VAT paid by a taxable person on the purchase of goods and / or services, other than goods or services in respect of which VAT cannot be reclaimed, from another taxable person would be recoverable.
- Incorrect
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