CAT / FIA FTX Syllabus F. Value Added Tax - VAT return - Notes ^{7 / 7}

The VAT return

The regular VAT return to HMRC is made on form VAT 700/12.

The boxes on a VAT return which a trader must fill in are as follows:

Box 1:	The total of the output VAT on sales, less the VAT on any credit notes issued, together with any fuel scale charges and adjustments for errors on previous VAT returns relating to output tax
Box 2:	The VAT due on acquisitions of goods made in Northern Ireland from EU member states (not in FTX syllabus)
Box 3:	The total of Boxes 1 and 2
Box 4:	The total of the input VAT on purchases and expenses being reclaimed less the VAT on any credit notes received. This total also includes the VAT on any acquisitions from EU countries (not in FTX syllabus), relief for impaired debts, and any adjustments for errors on previous VAT returns relating to input tax
Box 5:	The difference between Boxes 3 and 4. If the figure in Box 3 is larger than that in Box 4, then this total is the amount due to HMRC. If the figure in Box 3 is less than the figure in box 4, then the total is the amount that is due from HMRC.
Box 6:	The total of all sales less credit notes. This total is excluding VAT but should include the net amount of sales that are standard-rated, zero-rated and exempt.
Box 7:	The total of all purchases and other expenses less any credit notes. Again, this figure should be the total excluding any VAT and should include standard-rated, zero-rated and exempt supplies.
Box 8:	The total value of all sales and related services to EU member states made on or before 31 December 2020 and from Northern Ireland to EU Member States made from 1 January 2021 (not in FTX syllabus)
Box 9:	The total value of all purchases and related services from other EU member states made on or before 31 December 2020 and from Northern Ireland to EU Member States made from 1 January 2021 (not in FTX syllabus)

Illustration

Mia has the following information for her VAT quarter ended 31 December.

	VAT 100
	£
Standard rate sales	50,000
Zero rate sales	10,000
Standard rate purchases	30,000
Zero rate purchases	6,000
There is a fuel scale charge of £500.
All figures are VAT-exclusive.
Calculate Mia's VAT liability and show the entries that should be made on the VAT 100 for the period.

ANSWER
	£
VAT on standard rate sales £50,000 x 20%	10,000.00
VAT on fuel scale charge £500 x 20%	100.00
Output VAT	10,100.00
Less input VAT on standard rate purchases £30,000 x 20%	(6,000.00)
Net output VAT due to HMRC	4,100.00

	Box	£
VAT due on sales and other outputs	1	10,100.00
VAT due on acquisitions from the EU	2	0.00
Total VAT due (the sum of Boxes 1 and 2)	3	10,100.00
VAT reclaimed on purchases and other inputs, including acquisitions from the EU	4	6,000.00
Net VAT to be paid to HMRC or reclaimed by you (Difference between Boxes 3 and 4)	5	4,100.00
Total value of sales and all other outputs excluding any VAT. Include your Box 8 figure	6	60,000
Total value of purchases and all other inputs excluding any VAT. Include your Box 9 figure	7	36,000
Total value of all supplies of goods and related costs, excluding any VAT, to the EU	8	0
Total value of all acquisitions of goods and related costs, excluding any VAT, from the EU	9	0