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VAT Return Report and Calculation for UK

Shinjinee Sarkar
  • Updated

This report generates the VAT returns during a specified period for UK Business.

  1. On the Reports page, under the GENERAL LEDGER heading, click VAT Return.
  2. The VAT Return page appears. Enter the required criteria and click [Run] on the VAT Return page
  3. The report is generated.

Calculation Logic for the Above Boxes (Post Brexit)5:

The Calculation logic for a UK VAT return is mainly calculated and segregated into nine boxes. The breakup of each segregation is mentioned below.

      • VAT due for this period on sales and other outputs (Box 1): This category of UK VAT return box comprises All Sales Invoices and Sales Credit Notes for all customers, All Non-customer receipts, All Purchase Invoices for UK Suppliers for VAT Codes having RCT Applicable on them (only for RCT Invoices) and All Purchase Invoices and Purchase Credit Notes for all Suppliers (except UK and NI) for VAT Codes having zero-rated codes on them and a corresponding notional vat rate (generally with a non-zero rate) and Goods on Goods or Services option.

      • VAT due for this period on acquisitions from other EC member states (Box 2): Since the UK is no more part of the EU, the question of acquisitions from other EC member states does not arise.

      • Total VAT due (Box 3): This category of UK VAT return box comprises the summation of Box 1 and Box 2.

      • VAT reclaimed in this period on purchases and other inputs (including acquisitions from the EU) (Box 4): This category of UK VAT return box comprises All Purchase Invoices and Purchase Credit Notes for all Suppliers and All Non-supplier payments.

      • Net VAT to be paid to Customs or reclaimed (Box 5): This category of UK VAT return box comprises the difference between Box 3 and Box 4.

      • Total value of sales and other outputs excluding any VAT (Box 6): This category of UK VAT return box comprises the Net value of All Sales Invoices and Sales Credit Notes of all Customers and the Net value of All Non-customer receipts. This box also takes into consideration the figure from Box 8.

      • The total value of purchases and other inputs excluding any VAT (Box 7): This category of UK VAT return box comprises the Net value of All Purchase Invoices, the Net value of All Purchase Invoices and Purchase Credit Notes of all Suppliers (except UK and NI )for all zero VAT Codes, Having corresponding notional vat rates (generally non-zero rates) and Goods on Goods or Services option, the Net value of All Purchase Invoices and Purchase Credit Notes of all Suppliers for all zero VAT Codes, Having corresponding notional vat rates (generally non-zero rates) and Services or Blank on Goods or Services option and Purchase Credit Notes of all Suppliers for all non-zero VAT Codes and the Net value of All Non-supplier payments. This box also takes into consideration the figure from Box 9.

        The Goods and Services option gives you the chance to choose either Goods, Services or be kept Blank. The option can be set from Settings> VAT Rates> Add.

For all the above VAT Codes and Non-vatable codes, OSS ticked items are excluded.

  
For Cash basis of Accounting, VAT is calculated based on the proportionate VAT on allocated invoices which is allocated against Receipts/Payments 
( after adjusting the VAT on Credit Notes allocated against the invoice, if any) and VAT on unallocated Receipts/Payments. 
Rest all the calculations are same as in Invoice basis of Accounting.
Box 8 and Box 9 are not relevant since Brexit as, UK is not a part of EU anymore.