Business Tax 101 – Sole Trader Quiz

VAT is often referred to as a transactional tax due to it’s nature of increasing as it moves through the supply chain

A Third Country refers to any country outside of Ireland for VAT purposes

The VAT threshold for a person supplying goods is €37,500 in a 12 month period

Turnover for VAT threshold purposes may be reduced by the VAT paid for stock

The cash receipts basis means an individual only pays VAT on an invoice in the period in which it is paid

All businesses, irrespective of their customers, are entitled to opt for the cash receipts basis

A business can elect to register for VAT even if their turnover is only €10,000 in a 12 month period

A business that supplies only zero rated goods is not entitled to claim VAT on any purchases or expenses

The VAT rates in Ireland are available within the Revenue database

If a trader charges an incorrect VAT rate they must only repay to Revenue the actual amount of VAT charged to their customer

VAT can be reclaimed on all expenses regardless of their nature if an invoice shows VAT

If you pay VAT on a monthly direct debit you may file an annual VAT3

VAT on unleaded fuel can only be claimed with a valid VAT Invoice or receipt

VAT on food purchased for business entertained can be claimed as an input credit

If you have no transactions in a period, that is, no VAT on sales or purchases you are not obliged to file a VAT Return for that period

If an error is made on a VAT3 that has been submitted, a facility exists whereby the return can be amended

If a supplier is not VAT registered you should record that transaction as a zero rated VAT transaction

Constant amendments to VAT3s could be a trigger for a VAT Audit

eAudits are a routine part of VAT administration

VAT records should be retained for a minimum period of 5 years