What does each box mean on your VAT return?

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What does each box mean on your VAT return?

Yasmine Kaleem • 15 January 2023

Time to read: 2 minutes

A VAT return is used to calculate how much Value Added Tax a company should pay or be reimbursed by HM Revenue and Customs (HMRC). Most times, this is to be completed 4 times a year. The VAT return is made up of nine boxes which each represent different aspects of a company’s activity. In this post, we will outline the fundamentals of each VAT box and how it contributes to the VAT return.

VAT Boxes

Box 1 - This box shows the total VAT received on income.

Box 2 – This figure shows the VAT due on acquisition of goods for the period being reported. However, this box only applied to those in Northern Ireland importing goods from EU member states. The change to only allow goods from the EU was made from 01st January 2021 onwards.

Box 3 – This figure is calculated by adding boxes 1 and 2 together.

Box 4 - This figure shows the total VAT paid on expenses.

Box 5 – This figure shows the net VAT to pay to HMRC or reclaim. This is calculated by subtracting box 4 from box 3. If the net figure is positive, this is the amount owed to HMRC. However, if it is negative, HMRC will credit your account and repay the balance.

Box 6 - This figure shows the value of sales and all other outputs excluding any VAT, for the period being reported.

Box 7 – This figure shows the total value of purchases and all other inputs excluding any VAT, for the period being reported.

Box 8 – This figure shows the total value of all supplies of goods and related costs, excluding VAT, from Northern Ireland to EU member states (from January 2021).

Box 9 – This figure shows the total value of all acquisitions of goods and related costs, excluding any VAT, from EU member states.

If you have any questions about filing a VAT return, please do not hesitate to contact us.

At your service!

For more information visit:

https://www.gov.uk/guidance/how-to-fill-in-and-submit-your-vat-return-vat-notice-70012#section3

https://athenahallbookkeeping.com/blog/vat-boxes-explained/

https://www.cowgills.co.uk/news/back-to-basics-vat-returns/

https://sumup.co.uk/invoices/dictionary/vat-return/

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