How your Standard VAT Return is Calculated

 

If you are using the Standard VAT Accounting scheme, the VAT codes used to calculate the individual totals for each box in your VAT Return are as follows:

Box 1 - VAT due in this period on sales and other outputs

Totals the VAT amount of all credit transactions that have active VAT codes of T0 to T99, except those specified as EC sales or purchases, e.g. default tax codes, T4, T7 and T8, and those defined as not to be included in the VAT Return, e.g. default tax code T9.

Calculated from sales invoices, sales credits, bank receipts, cash/credit card receipts and journal credits.

Box 2 - VAT due in this period on acquisitions from other EC member states

Totals the VAT amounts of all debit transactions that have a VAT code specified as an EC purchase, i.e. default tax code, T8. Because EC purchase transactions have a VAT rate of zero, in accordance with VAT regulations a ænotionalÆ rate is applied using the standard rate, e.g. default tax code, T1.

Calculated from purchase invoices, purchase credits and payments.

Box 3 - Total VAT due (the sum of boxes 1 and 2)

Totals the values shown in box 1 and box 2.

Box 4 - VAT reclaimed in this period on purchases and other inputs (including acquisitions from the EC)

Totals the VAT amounts of all debit transactions that have active VAT codes of T0 to T99, except those specified as EC sales or purchases, e.g. default tax codes T4 and T7 and those defined as not to be included in the VAT return, default code T9. This box total also includes the ænotionalÆ EC purchase amount given in box 2, tax code T8 or its equivalent.

Calculated from purchase invoices, purchase credits, journal debits, bank payments and cash/credit card payments.

Box 5 - Net VAT to be paid to the tax authorities or reclaimed by you (difference between boxes 3 and 4)

Subtracts the value in box 4 from the value in box 3.

Box 6 - Total value of sales and all outputs excluding any VAT, including your box 8 figure.

Totals the net amount of all sales/output transactions that have active VAT codes of T0 to T99, except those specified as EC purchases, e.g. default tax codes T7 and T8, and those defined as not to be included in the VAT Return, e.g. default tax code T9.

Calculated from sales invoices, sales credits, bank receipts, cash/credit card receipts and journal credits.

Box 7 - Total value of purchases and all other inputs excluding any VAT, including your box 9 figure

Totals the net amounts of all purchases/input transactions that have active VAT codes of T0 to T99, except those specified as EC sales, e.g. default tax code T4 and those defined as not to be included in the VAT Return, e.g. default tax code T9.

Calculated from purchase invoices, purchase credits, journal debits, bank payments and cash/credit card payments.

Box 8 - Total value of all supplies of goods and related services, excluding any VAT, to other EC member states

Totals the net amount of all credit transactions that have tax codes specified as EC sales, e.g. default tax code T4.

Calculated from sales invoices, sales credits, bank receipts and journal credits.

Box 9 - Total value of EC purchases, excluding VAT

Total value of all debit transactions with EC purchase tax codes, e.g. T7 and T8.

Calculated from purchase invoices, purchase credits, bank payments, cash/credit payments and journal debits.

If you are using Journals to enter VAT transactions you must enter the VAT portion as a separate value and post this to the appropriate VAT Control account, i.e. credit values go to the Sales Tax Control account and debit values go to the Purchase Tax control account. Note also, that if you are using VAT Cash Accounting, all the boxes listed above report only on payments, receipts and journals, and omit invoice and credit note figures.

Related Topics

How your VAT Return is Calculated

How your Cash Accounting VAT Return is Calculated

Running the VAT Cash Accounting Scheme

Producing your VAT Return

Analysing the VAT Totals

Printing the VAT Return Reports

Checking your VAT Return

Reconciling your VAT Transactions

Clearing your VAT Control Accounts

Submitting your VAT Return to the Tax Authorities

Your VAT Return Checklist

The Financials Window