If you’re VAT-registered, then you must send each quarter a VAT return in quarterly installments to HM Revenue and Customs (HMRC) and are typically done online. This article will provide the steps involved in online filing vat returns and the quarterly VAT return online.
Registering for VAT
If your company is a Limited one and has a total annual revenue that exceeds the threshold for VAT (currently £82,000 for FY2015/2016) then you’re legally required to register for VAT. Businesses that earn more than the threshold for VAT, however, do not declare VAT, are at risk of being penalized. VAT registration can be done online through the HMRC website. After you have completed your VAT registration and received your VAT registration number you’ll then have to establish an account for VAT on Government Gateway. Government Gateway. This will permit you to file your quarterly filing VAT tax returns online.
What information do I need to complete an online VAT return?
In order to file a VAT tax return online, you’ll require your VAT number, as well as the figures that include the total amount you incurred in VAT during the period, also called your output tax. It also includes the total amount you have paid in VAT due to purchases made by your company and this is called the input tax.
Once you’ve got everything you need you need, log in to HMRC online services using the account you set up when you registered.
Filling out your VAT return
After you have chosen the proper form for the quarter, you will be presented with a set of boxes that must complete with correct information.
Box 1: Due VAT during this time on sales as well as other outputs
This is the total amount you charged in VAT over the course of the year or the tax you pay on your output.
Box 2: Tax payable for the period of acquisitions made from the other Member states belonging to the European Community (EC)
The value for Box 2 represents the sum that you’ve paid in VAT for goods or services provided by suppliers licensed in different EC Member States.
Box 3: Total VAT due
It is the sum of the boxes 1 and 2 and the form calculates for you.
Box 4: VAT that is reclaimed during the period of purchase as well as other sources (including acquisitions made from the EC)
In this section, you are required to enter the amount of VAT you paid on business purchases or input tax. Be sure to keep VAT invoices or receipts to back any purchases.
Box 5: The net VAT must be remitted to HMRC or returned
This number will be the difference between the boxes 3 and 4 The form will calculate this figure for you.
Box 6 The total value of sales and other outputs, excluding VAT
In this section, you’ll have to write down the total value of your business sales, excluding VAT.
Box 7 Total value of all purchases and other inputs, excluding VAT
In the statement, you should indicate the total cost you’ve incurred through corporate purchases, without VAT.
Box 8 Value of all the suppliers of goods and related expenses without VAT to the other EC member States
You only have to complete this section in the event that your business has provided products to a different EC State member. If this applies to you, then you need to provide the total value of the services or goods that were provided, including any associated expenses (such as delivery costs) without VAT.
Box 9 The total value of all purchases of goods and related expenses not including VAT from any other EC member States
It is only necessary to fill out box 9 if your company has purchased goods from a different EC member state. If this is the situation, then you should provide the total amount of the items you acquired in that EC Member State, as well as services associated with those items (such as delivery fees) and exclude VAT.
Submitting your VAT return
When all of the boxes are filled in and you’re sure that the figures you’ve entered are correct, the only thing required is send in your tax return. HMRC will look over your return and determine your VAT liability. This could be a VAT invoice or a refund. If there is a VAT invoice to pay, this will typically have to be paid within the time frame stipulated on the VAT return. It is crucial to make sure you’ve made your payment within the timeframe because you could be asked to pay a fee if you don’t pay the bill in time.
Editor’s note:This article was provided by Account Ease. If you’d like additional information regarding completing your VAT return or contracting generally, you can contact an account executive from Account Ease.
