How do I complete a VAT return?

All VAT registered businesses should now be signed up for Making Tax Digital for VAT. You no longer need to sign up yourself. HMRC will sign up all new VAT registered businesses to Making Tax Digital for VAT automatically unless they are already exempt or have applied for exemption. You should now keep VAT records and submit VAT Returns using compatible software. Find software that’s compatible with Making Tax Digital for VAT.

You must complete a return for each tax period and send it back to HMRC and pay any VAT due for the period by the due date shown on the return. For more information read How to fill in and submit your VAT Return (VAT Notice 700/12).

You must enter the output tax payable on purchases under the reverse charge in box 1, but the VAT exclusive value of the purchases must not be entered in box 6. Input tax may be reclaimed, subject to the normal rules, by including it in the total shown in box 4. The VAT exclusive value of the purchases should be entered in box 7 in the normal way.

You can get help on completing your VAT Return read the VAT Returns guide. For more information read How to fill in and submit your VAT Return (VAT Notice 700/12), which contains a checklist to help you check that your return is complete and correct. If you are required to keep digital records then your VAT Return should also be submitted using compatible software. Your software will be able to compile the figures required for the Return and fill it in for you. If you still cannot find the answe

You may be able to correct errors in returns for the preceding 4 years by using boxes 1 and 4 of the return for the period of discovery, provided the net error is either: £10,000 or less between £10,000 and £50,000 and does not exceed 1% of the total value of your sales (before correction) shown in box 6 Net errors exceeding £50,000 and those above £10,000 that exceed 1% of the box 6 amount must be separately notified. You can find further information in How to correct VAT errors and make adjust

This notice helps you complete the VAT return and provides information on how to submit your completed return to HMRC. It will guide you through the form, box by box. Make sure that you read any VAT notices relevant to your circumstances before you complete your return.

When checking your figures: if all your outputs are standard-rated, the total in box 1 should be 20% of the total in box 6 (before 4 January 2011 the standard VAT rate was 17.5%, and from 1 December 2008 to 31 December 2009 it was 15%) if you have entered a value in box 9, include any acquisition tax due on your UK or intra-EU acquisitions in boxes 2 and 4 your box 5 total should be the difference between boxes 3 and 4 — this is calculated automatically if you complete your return using software

Where PVA is legitimately notified on a customs declaration the import VAT to be accounted for  is no longer treated ‘as if’ it were a duty of customs but falls within VAT legislation. Corrections and errors should be accounted on the relevant return and, where necessary, any additional VAT identified should be assessed using VAT mechanisms For fully taxable importers, PVA VAT accounting will usually result in a nil net tax liability but it is important that even where this is the case the VAT i

Virtually all VAT-registered businesses are required by law to submit their returns via functional compatible software and pay electronically. See VAT Notice 700/21 for more information. If you are required to submit a VAT return using functional compatible software, the software provider you choose will give guidance on how to submit your return using their product. If you are exempt from this requirement to keep digital records, you do not have to submit a software return. See VAT Notice 700/2

On the VAT Return (form VAT100) there are a number of boxes to gather information on the value of goods sold to, or bought from, EU member states and 2 boxes for VAT due on acquisitions. These are: Box number Description 2 Total VAT due on acquisitions into Northern Ireland in the period 4 Amount of VAT deductible on any business purchase including acquisitions of goods into Northern Ireland and related costs from EU member states (subject to the normal input tax rules) 6 Total value of all your

To work out box 5, you’ll need the figures from box 3 (total VAT due) and box 4 (VAT reclaimed): deduct the number in box 4 from the number in box 3 enter the difference in box 5 If the figure in box 3 (total VAT due) is more than the figure in box 4 (VAT reclaimed), the difference is the amount you must pay. If the figure in box 3 (total VAT due) is less than the figure in box 4 (VAT reclaimed), we’ll credit your account and repay the balance, subject to any enquiries we may need to make.