Completing a VAT return means filling in nine boxes that report the VAT you charged on sales (output VAT), the VAT you paid on purchases (input VAT), and the difference you either owe HMRC or reclaim. Almost every VAT-registered business now files digitally through Making Tax Digital (MTD)-compatible software, and the return is normally due one calendar month and seven days after the end of each accounting period.
Below we explain all nine boxes, show how the figures connect, and flag the mistakes that most often trigger an HMRC query.
When Do You Need to File a VAT Return?
You must register for VAT once your taxable turnover passes the £90,000 registration threshold (2026/27), or you can register voluntarily before then. Most businesses file quarterly, though monthly and annual schemes exist.
Each return covers an "accounting period". The deadline to both submit and pay is usually one month and seven days after the period ends, so a quarter ending 31 March is due by 7 May. Miss it and you risk late-submission penalty points and late-payment interest.
The Nine VAT Return Boxes at a Glance
| Box | What it reports |
|---|---|
| 1 | VAT due on sales and other outputs |
| 2 | VAT due on acquisitions of goods from the EU (Northern Ireland only) |
| 3 | Total VAT due (Box 1 + Box 2) |
| 4 | VAT reclaimed on purchases and other inputs |
| 5 | Net VAT to pay HMRC or reclaim (difference between Box 3 and Box 4) |
| 6 | Total value of sales, excluding VAT |
| 7 | Total value of purchases, excluding VAT |
| 8 | Value of goods supplied to the EU (Northern Ireland only) |
| 9 | Value of goods acquired from the EU (Northern Ireland only) |
Box 1, VAT Due on Sales and Other Outputs
Enter the total output VAT you charged customers in the period. At the standard 20% rate, £10,000 of net sales generates £2,000 of VAT in Box 1. Include VAT on the sale of business assets, fuel scale charges, and any reverse-charge supplies you account for as the recipient.
Box 2, VAT Due on EU Acquisitions (Northern Ireland)
This applies only to businesses in Northern Ireland that buy goods from VAT-registered suppliers in the EU. Great Britain businesses leave it as £0.00.
Box 3, Total VAT Due
Box 1 plus Box 2. Your software calculates this automatically, it is the total VAT you owe before deducting what you can reclaim.
Box 4, VAT Reclaimed on Purchases (Input VAT)
Enter the input VAT you can recover on business purchases: stock, equipment, professional fees and overheads. You can only reclaim VAT where you hold a valid VAT invoice, and you cannot reclaim VAT on most business entertainment or on the purchase of a car for mixed use. On the Flat Rate Scheme, Box 4 is usually nil, except for certain single capital purchases of £2,000 or more including VAT.
Box 5, Net VAT to Pay or Reclaim
This is Box 3 minus Box 4. A positive figure is what you pay HMRC; if Box 4 exceeds Box 3, HMRC repays you the difference. For example, Box 3 of £2,000 and Box 4 of £1,400 leaves £600 to pay.
Box 6, Total Value of Sales (Excluding VAT)
The net value of all your sales and outputs for the period, exclude the VAT itself. Include zero-rated, exempt and reverse-charge sales. On the Flat Rate Scheme, Box 6 is your VAT-inclusive turnover.
Box 7, Total Value of Purchases (Excluding VAT)
The net value of all purchases and expenses, excluding VAT. Leave out wages, PAYE, drawings and anything outside the scope of VAT.
Boxes 8 and 9, EU Goods Movements (Northern Ireland)
Box 8 is the value of goods supplied to the EU, and Box 9 the value of goods acquired from the EU, relevant only under the Northern Ireland Protocol. GB-only businesses enter £0.00 in both.
How Do You Submit the Return to HMRC?
Since Making Tax Digital became mandatory for VAT, you can no longer type figures straight into the old HMRC portal. You must keep digital records and file using MTD-compatible software that connects to HMRC through a digital link. Options include cloud bookkeeping packages or bridging software that pulls figures from a spreadsheet.
Once submitted, pay by the deadline using Direct Debit, bank transfer or card. Set up a Direct Debit and HMRC collects payment automatically three working days after the deadline.
For the full official walkthrough, see HMRC's How to fill in and submit your VAT Return (VAT Notice 700/12).
Common VAT Return Mistakes to Avoid
- Reclaiming VAT without a valid invoice, HMRC can disallow it on inspection.
- Forgetting fuel scale charges when employees use business fuel privately.
- Mixing up gross and net in Boxes 6 and 7, these are always VAT-exclusive (except Flat Rate Box 6).
- Claiming VAT on exempt or non-business costs, which inflates Box 4.
- Missing the deadline and collecting penalty points under the points-based regime.
If your figures or scheme feel uncertain, our VAT services team can review, prepare and file the return for you so it lands right first time. You can also browse common queries on our FAQ page.
Frequently Asked Questions
What goes in Box 1 of a VAT return?
Box 1 shows the total VAT you charged on sales and other outputs in the period, your output VAT. At the 20% standard rate, that is 20% of your net standard-rated sales, plus VAT on asset sales, fuel scale charges and any reverse-charge supplies.
Can I still type my VAT return into the HMRC website?
No. Under Making Tax Digital, virtually all VAT-registered businesses must keep digital records and file through MTD-compatible or bridging software. The legacy online VAT return form is closed for most filers.
When is my VAT return due?
For standard quarterly filers, both the return and payment are due one calendar month and seven days after the end of the accounting period. A quarter ending 30 June is therefore due by 7 August.
What if I make a mistake on my VAT return?
You can usually adjust net errors below the reporting threshold (£10,000, or up to £50,000 if under 1% of your Box 6 figure) on your next return. Larger or deliberate errors must be reported to HMRC separately, since form VAT652 was withdrawn in 2025, you now do this through HMRC's online "Check how to tell HMRC about VAT Return errors" service via your Government Gateway account.
Need a Hand With Your VAT Return?
Whether you are filing your first return or untangling the Flat Rate Scheme, getting every box right keeps HMRC happy and protects your cash flow. Get in touch with Zmartly and we'll handle the figures, the filing and the deadlines for you.
