When completing a VAT return in the UK, Boxes 1 to 9 are used to report different aspects of your VAT accounting.
Here's a breakdown of what each box represents:
Box 1: VAT due on sales and other outputs
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Purpose: This box is for the total VAT you owe to HMRC on sales (outputs) made during the VAT period.
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Includes: VAT on standard, reduced, and zero-rated sales, as well as VAT on any other taxable supplies, such as goods taken for personal use or VAT due on reverse charge transactions.
Box 2: VAT due on acquisitions of goods made in Northern Ireland from EU Member States
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Purpose: This box is for the VAT due on goods purchased from EU Member States and brought into Northern Ireland.
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Applies to: Businesses in Northern Ireland under the Northern Ireland Protocol.
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Includes: VAT on goods acquired from the EU, calculated at the UK VAT rate.
Box 3: Total VAT due (the sum of Box 1 and Box 2)
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Purpose: This is the total VAT you owe to HMRC for the period.
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Calculation: Box 1 + Box 2.
Box 4: VAT reclaimed on purchases and other inputs (including acquisitions in Northern Ireland from EU Member States)
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Purpose: This box is for the total VAT you can reclaim on purchases (inputs) made during the VAT period.
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Includes: VAT on business purchases, imports, and goods acquired from the EU (for Northern Ireland businesses).
Box 5: Net VAT to pay to HMRC or reclaim (the difference between Box 3 and Box 4)
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Purpose: This box shows the net amount of VAT you owe to HMRC or the amount you can reclaim.
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Calculation: Box 3 - Box 4.
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If the result is positive, you owe VAT to HMRC.
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If the result is negative, you can reclaim VAT from HMRC.
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Box 6: Total value of sales and all other outputs excluding any VAT
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Purpose: This box is for the total value of your sales and other outputs, excluding VAT.
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Includes: The value of standard, reduced, and zero-rated sales, as well as exempt and outside-the-scope supplies.
Box 7: Total value of purchases and all other inputs excluding any VAT
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Purpose: This box is for the total value of your purchases and other inputs, excluding VAT.
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Includes: The value of goods and services purchased for your business, excluding VAT.
Box 8: Total value of all supplies of goods and related costs, excluding any VAT, to EU Member States
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Purpose: This box is for the total value of goods supplied to EU Member States, excluding VAT.
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Applies to: Businesses in Northern Ireland under the Northern Ireland Protocol.
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Includes: The value of goods sold to EU customers, excluding VAT.
Box 9: Total value of all acquisitions of goods and related costs, excluding any VAT, from EU Member States
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Purpose: This box is for the total value of goods acquired from EU Member States, excluding VAT.
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Applies to: Businesses in Northern Ireland under the Northern Ireland Protocol.
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Includes: The value of goods purchased from EU suppliers, excluding VAT.
Summary:
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Boxes 1-5: Deal with VAT amounts (what you owe or can reclaim).
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Boxes 6-7: Deal with the total values of sales and purchases, excluding VAT.
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Boxes 8-9: Specifically for Northern Ireland businesses trading with the EU, reporting the value of goods supplied to and acquired from EU Member States.
This structure helps HMRC assess your VAT liabilities and entitlements accurately. Make sure to double-check your figures before submitting your VAT return to avoid errors.