Spanish VAT | Baamboozle - Baamboozle | The Most Fun Classroom Games!

What are intra-community operations in the context of VAT?

Intra-community operations are commercial transactions between member countries of the European Union that are subject to special VAT rules.

What is the difference between the general tax rate and the reduced tax rate of VAT?

The general tax rate is the standard percentage of VAT applied to most goods and services, while the reduced rate is a lower percentage applied to certain goods

What is the cash principle in relation to VAT?

the cash principle allows taxpayers to declare and pay VAT only when they receive payment for the sale or make payment for purchases, which may differ from the

What is the accrual principle in relation to VAT?

The accrual principle states that VAT must be declared and paid at the time the transaction occurs, regardless of when the money is received or paid.

What are special VAT regimes and what is their purpose?

Special VAT regimes are specific provisions that apply to certain sectors or economic activities to simplify compliance with tax obligations or to adapt to the

What is the main objective of VAT?

The main objective of VAT is to tax consumption and generate revenue for the government.

What is the difference between accrued VAT and input VAT?

Accrued VAT is the tax charged by a seller in a transaction, while input VAT is the tax paid by a buyer in a transaction.

How is VAT calculated in a transaction?

VAT is calculated by multiplying the selling price by the applicable VAT rate and then subtracting the amount of input VAT on the purchase, if applicable.

What is a final consumer?

A final consumer is a person who purchases goods or services for their own consumption and is not obligated to collect or remit VAT.

What is a VAT taxpayer ?

A VAT taxpayer is a person or entity that is required to collect and remit VAT to the government, such as businesses and professionals

What does VAT stands for?

Value-Added Tax

Is VAT a direct or indirect tax?

indirect

Who does pay the VAT to the tax office?

Taxpayers

What does VAT exemption mean?

VAT exemption means that certain goods or services are exempt from the tax, and therefore, VAT is not applied to them.

From which moment is the input VAT paid by a businessperson deductible?

From the moment they are incurred as a result of the acquisition of goods

Is the transportation of passengers by boat from Valencia to Mallorca subject to VAT? Why/ Why not?

Yes, since Valencia and Mallorca are territories where VAT applies.

Which areas of Spain does the VAT apply?

Mainland Spain and the Balearic Islands.

Name 5 products that are VAT exempt.

Postage stamps, Masks, antibacterial gel, probes, syringes, thermometers, gloves, oxygen, protective goggles, etc.

What is the rate of reduced VAT? (%)

10 %

Name 2 foreign transaction that are exempt from normal VAT rate.

exports (deliveries of goods transported outside the European Union), intra-community deliveries of goods to business customers by transport to another Member S

Name 3 domestic transactions that are exempt from the normal tax rate.

healthcare, educational activities, cultural activities, social activities, social welfare assistance, sporting activities, real estate, financial transactions

What is the standard rate of VAT? (%)

21 %