Test your understanding of the chapter by answering the following questions: 1) wow (i) Is VAT an expense? (ii) What are ‘taxable supplies’? (iii) How many rates of VAT are currently used? (iv) Distinguish between zero rated VAT and exempt supplies. (v) What is a ‘tax point’? (vi) Which of the following would qualify as taxable supplies or exempt supplies: .

(a) sale of insurance

(b) sale of computers and printers (ce) services provided by an accountant

(d) sale of warm take-away food

(e) sale of baby clothes

(f) services provided by a solicitor (g) sale of-tickets to enter a cinema (h) rental of power tools for DIY (i) services provided by a dentist (j) sale of newspapers.