VAT return Flashcards
What does MTD stand for?
Making Tax Digital
When did MTD become mandatory?
1st April 2022
Output tax is what?
VAT on Sales
Input tax is what?
VAT on purchases and expenses
What goes in Box 1 of the return?
VAT due in this period on sale and other outputs.
What goes in Box 2 of the return?
VAT due in period on acquisition of good made in Northern Ireland and EU member states.
What goes in Box 3 of the return?
Total VAT due (box 1+2)
What goes in Box 4 of the return?
VAT reclaimed in the Period on purchases and other inputs.
What goes in Box 5 of the return?
Nat VAT to be paid to Customs or reclaimed by you. (box 3 - Box 4)
What goes in Box 6 of the return?
Total values from sales and all other outputs, excluding any VAT
What goes in Box 7 of the return?
Total values of purchases and all other inputs excluding VAT
What goes in Box 8 of the return?
Total value of dispatches of goods and related cost (excluding VAT) from Northern Ireland and other EU member states
What goes in Box 9 of the return?
Total value of acquisitions of goods and related costs (excluding VAT) from Northern Ireland and other EU member states
Which boxes on the VAT return show pence?
Boxes 1-5 have pence and boxes 6-9 don’t.
List items that would be included in box 1
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
List items that would be included in box 4
UK purchases/expenses (less any returns)
Reverse charge transactions
Import VAT
bad debt relief
Any over or understated VAT from previous return
List items that would be included in box 6
UK sales (including zero rate, reduced rate and exempt supplies)
Exports to customers outside UK
Reverse charge transactions
Fuel scale charge
List items that would be included in box 7
UK purchases and expenses
Imports
Reverse transactions
Purchases from outside of the UK are called?
Imports
How are imports handled on the VAT return?
Reclaim VAT as input tax if for business use.
How is VAT handled for purchases from outside of the UK?
Pay VAT at same rate as UK at port of entry
What is Postponed Import VAT?
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.
How are purchases of services handled?
Reverse charge rules apply.
How does the reverse charge work?
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.
How does VAT work for Exports outside of the UK?
Exports are issued at zero rate for VAT, tax is applied at the other end.
When does a VAT return need to be summitted?
1 calendar month and 7 days after the end of an account period.
When should payment for the VAT be made?
1 calendar month and 7 days after the end of an account period.
If a business has direct debit set up for VAT when it be collected?
1 calendar month and 10 days after the end of an account period.
