Comprehension

1. Answer the following questions.

1. What is VAT?

2. When do businesses add VAT to the price?

3. When can you get a refund of VAT?

4. How many rates of VAT are there in the UK?

5. How much is the standard rate?

6. When can you pay a reduced rate?

7. There are some goods on which you don't pay any VAT, aren’t there?

Vocabulary

2. Match the words from column A with the words from column B to make a phrase.

A	B
1) to charge	a) the VAT
2) to add	b) goods and services
3) to reclaim	c) in the price
4) to increase	d) a tax
5) to purchase	e) a refund of VAT
6) to include VAT	f) to the price
7) to get	g) to taxation
8) to be subject	h) the standard rate

3. Find the words with the same meaning.

1) to levy	a) to take back
2) goods	b) a deal
3) to purchase	c) to supply
4) to reclaim	d) to charge
5) a consumer	e) to buy
6) a transaction	f) to give money back
7) to provide	g) a buyer
8) to refund	h) products

4. Fill in the correct words from the list below.

Obtain, refund, inspect, payable, formalities, customs officer, VAT, information, reclaim, form, lounge, leave, stamp

In the United Kingdom, value added tax (VAT) is … on most purchases you make. As a non-European resident visiting the UK, you may be able to recover VAT paid on goods that you intend to take home with you when you … the country. You will need to … certain documents and take the following steps in order to successfully … VAT as a U.K. tourist.

1. Retain all proof of purchase. Cash register receipts are crucial when making a VAT … in the UK because not only do they prove that purchases were made, but they also contain all the … required to obtain the appropriate refund.

2. Complete a VAT claim … .

3. Recover … at point of exit. Once you are ready to leave the United Kingdom, you will need to present your VAT refund form along with your receipts to a … at the port or airport. Before the officer can authorize a refund, he may need to … the goods being exported. Customs will review your form, receipts and goods, … your form and return it to you. Once all the … are finished, you will be directed to VAT refund collection point, usually located in the departure … at most UK airports, to exchange your stamped VAT form.

Grammar in Use Tenses Revision

5. Put the words in brackets into the correct tense.

1. He (be) liable to pay the tax.

2. When you (pay) VAT?

3. You (not/ have to) pay VAT at all on some goods and services.

4. What he (think) of the new tax law?

5. You know that a new Tax Code already (adopt).

6. She would like to know how the taxable income (determine).

7. They (charge) about €20 for this service yesterday.

8. Our company (supply) a wide range of consumer electronics.

9. If he (not/complete) all necessary documents, he (not/get) a refund of the VAT.

10. If all the formalities (finish), I would (direct) to VAT refund collection point.