The boxes on the VAT return show the following information:
Box 1 VAT due in this period on sales and other outputs
This contains the VAT charged on all sales and receipts for the period of the VAT return less any VAT on sales returns. This represents the total output tax. This total should be adjusted for any net errors (£10,000 net or less) from a previous return which increase the output tax. The credit notes should be deducted and the net error should be an addition. This box should include all VAT due to HMRC for any other reasons, such as fuel scale charge.
Box 2 VAT due in this period on acquisitions from other EC Member States
This represents the VAT due in the period on all goods and any services directly related to those goods purchased from VAT registered businesses within the EU. Where there are any purchases from within the EU, the VAT due on such purchases will need to be calculated and disclosed in Box 2 of the tax return, whether or not VAT was paid on the invoice and whether or not VAT on EU purchases are shown in the VAT account. The business may be entitled to reclaim this amount and where this is the case, the same amount is added to Box 4 of the tax return.
Box 3 Total VAT due (sum of boxes 1 & 2)
This box displays the sum of the values calculated in Boxes 1 and 2. It represents the total VAT that is owed for the applicable VAT period. This is calculated automatically where the online return is being used.
Box 4 VAT reclaimed in this period on purchases and other inputs
This represents the amount of VAT to be reclaimed for payments and expenses incurred for the business use during the VAT period. It represents the total input tax. This total should be adjusted for any purchases credit notes received and any net errors (£10,000 net or less) from a previous return which increases the input tax. The credit notes should be deducted and the net error should be an addition. It also includes the value calculated for EC acquisitions and any services directly related to those goods in Box 2 and any VAT on imports from countries outside the EC.
Box 5 Net VAT to be paid to HMRC or reclaimed by you
This is the difference between Box 3 and Box 4. This is calculated automatically where the online return is being used. If the value in Box 3 (Total VAT due) is greater than the value in Box 4 (VAT reclaimed in this period on purchases), the difference will be a positive figure in Box 5. This represents the total amount of VAT that the business must pay to HMRC for this period. The payment can be done by online bank transfer or faster payments from the company’s bank account or from HMRC’s website, by direct debit, or a cheque can be sent to HMRC. If the value in Box 3 (Total VAT due) is less than the value in Box 4 (VAT reclaimed in this period on purchases), the difference will be a negative figure in Box 5. This represents the total amount of VAT that the business can reclaim from HMRC as a rebate for the applicable VAT period. A refund will be sent to the company’s bank account once HMRC have the company’s bank details and HMRC’s checks do not indicate that there may be errors in the VAT return computations or the existence of any other reasons why the business may not be entitled to such refund; for example, if the business is previously owing HMRC.
Box 6 Total value of sales and all other outputs, excluding any VAT
This represents the total value of sales and receipts, excluding VAT for the period. This includes all despatches and exports to other countries, both EU and non-EU members and all exempt, standard and zero-rated supplies. It also includes the value in Box 8. It has to be adjusted for any credit or debit notes, but it is not adjusted for any bad debt relief. 48 The amount in this box can be the total of sales appearing in the Income Statement for the period the VAT return covers.
Box 7 Total value of purchases and all other inputs, excluding any VAT
This represents the total value of all payments and expenses, excluding VAT for the period. This includes all acquisitions and imports from other countries, both EU and non-EU members and all exempt, standard and zero-rated supplies. It also includes the value in Box 9. It has to be adjusted for any credit or debit notes.
Box 8 Total value of all supplies of goods and related costs, excluding any VAT, to other EC Member States
This represents the total value of all invoices and related services to EC member states, excluding VAT. Related services refer to items such as freight, delivery and insurance charges for the goods.
Box 9 Total value of all acquisitions of goods and related costs, excluding any VAT, from other EC Member States
This represents the total value of all invoices and related services from VAT registered suppliers in EC member states, excluding VAT. Related services refer to items such as freight, delivery and insurance charges for the goods.
