VAT return

Question 1

What does MTD stand for?

Answer 1

Making Tax Digital

Question 2

When did MTD become mandatory?

Answer 2

1st April 2022

Question 3

Output tax is what?

Answer 3

VAT on Sales

Question 4

Input tax is what?

Answer 4

VAT on purchases and expenses

Question 5

What goes in Box 1 of the return?

Answer 5

VAT due in this period on sale and other outputs.

Question 6

What goes in Box 2 of the return?

Answer 6

VAT due in period on acquisition of good made in Northern Ireland and EU member states.

Question 7

What goes in Box 3 of the return?

Answer 7

Total VAT due (box 1+2)

Question 8

What goes in Box 4 of the return?

Answer 8

VAT reclaimed in the Period on purchases and other inputs.

Question 9

What goes in Box 5 of the return?

Answer 9

Nat VAT to be paid to Customs or reclaimed by you. (box 3 - Box 4)

Question 10

What goes in Box 6 of the return?

Answer 10

Total values from sales and all other outputs, excluding any VAT

Question 11

What goes in Box 7 of the return?

Answer 11

Total values of purchases and all other inputs excluding VAT

Question 12

What goes in Box 8 of the return?

Answer 12

Total value of dispatches of goods and related cost (excluding VAT) from Northern Ireland and other EU member states

Question 13

What goes in Box 9 of the return?

Answer 13

Total value of acquisitions of goods and related costs (excluding VAT) from Northern Ireland and other EU member states

Question 14

Which boxes on the VAT return show pence?

Answer 14

Boxes 1-5 have pence and boxes 6-9 don’t.

Question 15

List items that would be included in box 1

Answer 15

UK sales (less any returns)
Goods taken for private use
Postponed import VAT
Reverse charges
Fuel scale charge
Any over or understated VAT from previous return

Question 16

List items that would be included in box 4

Answer 16

UK purchases/expenses (less any returns)
Reverse charge transactions
Import VAT
bad debt relief
Any over or understated VAT from previous return

Question 17

List items that would be included in box 6

Answer 17

UK sales (including zero rate, reduced rate and exempt supplies)
Exports to customers outside UK
Reverse charge transactions
Fuel scale charge

Question 18

List items that would be included in box 7

Answer 18

UK purchases and expenses
Imports
Reverse transactions

Question 19

Purchases from outside of the UK are called?

Answer 19

Imports

Question 20

How are imports handled on the VAT return?

Answer 20

Reclaim VAT as input tax if for business use.

Question 21

How is VAT handled for purchases from outside of the UK?

Answer 21

Pay VAT at same rate as UK at port of entry

Question 22

What is Postponed Import VAT?

Answer 22

Where a registered business doesn’t need to pay VAT at point of entry but enters the VAT in both box 1 and 4 on the return. Net amount will go in box 7.

Question 23

How are purchases of services handled?

Answer 23

Reverse charge rules apply.

Question 24

How does the reverse charge work?

Answer 24

Value of the import tax is added to box 1 as output tax.
Value of the import tax is added to box 4 as input tax.
The net value is added to box 6 as part of total sales.
The net value is added to box 7 as part of total purchase.

Question 24

How does VAT work for Exports outside of the UK?

Answer 24

Exports are issued at zero rate for VAT, tax is applied at the other end.

Question 24

When does a VAT return need to be summitted?

Answer 24

1 calendar month and 7 days after the end of an account period.

Question 25

When should payment for the VAT be made?

Answer 25

1 calendar month and 7 days after the end of an account period.

Question 26

If a business has direct debit set up for VAT when it be collected?

Answer 26

1 calendar month and 10 days after the end of an account period.