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VAT return

What is a VAT return?

A VAT return is a summary of one VAT period, usually three months.

It has nine boxes. Box 1 is the VAT due on sales and box 4 is the VAT reclaimed on purchases.

Box 5 is the net VAT to pay or reclaim.

Example

A return has £900.00 in box 1, nothing in box 2 and £550.00 in box 4. Box 5 is £350.00, which the business pays to HMRC.

Why it matters

The figures come from the books: the VAT totals in the day books and the cash book. If the books are wrong, the return is wrong.

Practise it

  1. What each box of the VAT return means7 min, easyPremium
  2. How to work out box 1 and box 49 min, mediumPremium
  3. Net VAT: pay or reclaim8 min, mediumPremium
Module, 5 rooms, PremiumThe VAT return
See the first roomWhat each box of the VAT return means

Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].