The experts at Croner Taxwise share their top 5 VAT myths…
1.Client is adamant that their car dealer has advised them that VAT incurred on the purchase of an electric car is recoverable in full.
2. A building or a piece of land is itself opted to tax, and that option continues after the building is transferred to a new owner.
3. Exempt and outside-the-scope supplies of goods and services do not form part of taxable turnover for VAT registration or Making Tax Digital threshold purposes, but zero rated supplies of goods or services do (including exports).
4. Exempt and zero rated supplies are both included when calculating the gross turnover on which VAT is to be declared on the Flat Rate Scheme (FRS). Outside-the-scope supplies of goods and services are not.
5. Expense recharges are disbursements