Quick guide to completing a VAT Return
These are the boxes of the VAT return that you will be asked to complete when you submit your VAT return online:
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Box to be completed |
Comments |
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Box 1 |
To calculate the output VAT that is due for a period, the first step is to identify the total sales. The second step is to calculate the VAT. The total is divided by six – this amount is then entered into Box 1. |
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Box 2 |
Box 2 is only used if items have been bought from other EC (European Community) countries, the figure will be taken from purchases, not sales. Multiply any purchases by the rate of VAT (20%). Often this box will be £0. The treatment of items included in this box may be affected by the UK leaving the EU. |
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Box 3 |
Box 3 is the sum of Boxes 1 and 2, it is automatically calculated when the return has been completed. |
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Box 4) |
The general rule is that VAT can be reclaimed by businesses on goods and services bought by the business that has been charged by the supplier, as long as the business makes standard, reduced or zero-rate supplies. Box 4 is the amount of VAT reclaimed from purchases and other expenses (input VAT). If any acquisitions from EC member states were included in box 2, this amount must also be included. |
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Box 5 |
Box 5 is the difference between boxes 3 and 4, it is automatically calculated when the return has been completed. |
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Box 6 |
Box 6 shows the total value of net sales for the period (excluding VAT). Do not include pence. This is calculated by subtracting the total sales from the VAT. |
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Box 7 |
Box 7 shows the total value of net purchases and expenses for the period (excluding VAT). Do not include pence. |
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Box 8 |
Box 8 shows the total value of net sales (goods only) for the period (excluding VAT) to other EC member states. Do not include pence. This box is often £0. |
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Box 9 |
Box 9 shows the total value of net purchases for the period (excluding VAT) from other EC member states. Do not include pence. This box is often £0. The treatment of items included in this box may be affected by the UK leaving the EU. |