VAT Return Boxes explained (Post Brexit)

The Tax Kit: April 2021.

The VAT Return is essentially split into 3 parts:

A. Calculation of VAT Due

B. Comparative Total Figures (excluding VAT)

C. Northern Ireland Protocol European Community Trading Totals (excluding VAT)

The narrative explains what is required for the different boxes post Brexit.

A. Calculation of VAT Due

Box 1

Include the VAT due on all goods and services you supplied in the period covered by the return. This does not include exports or dispatches as these are zero rated.

Include the VAT due in this period on imports accounted for through postponed VAT accounting **(see Box 4 below).

Box 2

For goods moved under the Northern Ireland protocol only.

Show the VAT due (but not paid) on all goods and related services you acquired in this period from EU Member States.

Box 3

This figure is automatically calculated by the VAT Return.

The total amount of the VAT due ie the sum of boxes 1 and 2.

This is your Total Output Tax.

Box 4

Show the total amount of deductible VAT charged on your business purchases. This is referred to as your ‘Input VAT’ for the period.

Include:

  • your box 2 figure re EU purchases via Northern Ireland
  • the VAT reclaimed in this period on imports accounted for through postponed VAT accounting **(see Box 1 above).

Box 5

This figure is automatically calculated by the VAT Return.

It takes the figures in boxes 3 and 4 and deducts the smaller from the larger and enters the difference in box 5.

If this amount is under £1, you need not send any payment, nor will any repayment be made to you, but you must still fill in this form and submit it to HMRC.

B. Comparative Total Figures (excluding VAT)

These figures are used as a check the reasonableness of the figures identified in the VAT calculation.

Boxes 6 and 7

In Box 6 show the value excluding VAT of your Total Outputs (supplies of goods and services). Include zero rated, exempt outputs and EU supplies via Northern Ireland from box 8.

In Box 7 show the value excluding VAT of all your Inputs (purchases of goods and services). Include the value of all imported goods, zero rated, exempt inputs and EU acquisitions via Northern Ireland from box 9.

C. Northern Ireland Protocol European Community Trading Totals (excluding VAT)

Boxes 8 and 9

EU trade under the Northern Ireland protocol only

Only use boxes 8 & 9 if you have supplied goods to, or acquired goods from, an EU Member State under the Northern Ireland protocol.

Include related costs such as freight and insurance where these form part of the invoice or contract price.

The figures should exclude VAT.

You can find details of EU Member States in Notice 60 and Notice 725 or on our website at www.gov.uk/topic/business-tax/vat and at www.uktradeinfo.com under Intrastat.

In Box 8 show the total value (exclude VAT) of all supplies of goods and related costs, excluding any VAT, to EU Member States from Northern Ireland.

In Box 9 show the total value (exclude VAT) of all acquisitions of goods and related costs, excluding any VAT, from EU Member States to Northern Ireland.

Please review other blogs in this series for additional information.

Note

VAT, duty and customs rules are complex. This note is a brief introduction to help your VAT Return submission relating to the new Brexit changes and is not a full explanation. Links to some HMRC guidance has been included for further information. Obtain advice on your own specific circumstances and check whether any relevant rules have changed. Brexit rules will continue to develop over the coming months. Please review HMRC guidance for future changes.

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