How are the values of the 9 boxes of the VAT Return calculated (UK Only)

Issue

When looking at the VAT return, you are unsure which transactions are used in calculating the VAT return and the values for those that are included in the VAT return box.

Solution

When you run your VAT Return, your results are based on ledger transactions for the period from and period to you selected in your VAT Return or VAT Obligation record associated to your VAT Return (only if you have enabled Making Tax Digital for VAT).

In order to see how the 9 boxes are calculated you would need to find the VAT Audit Reports folder in Reports.  There are two report folders, depending on if you are on the VAT Accrual Scheme or the VAT Cash Scheme.

Within each of the folders, there will be several reports, listing the transactions and tax amount that is included for this set of transactions. For example, Box 1 – Bank Receipts VAT Amount will include customer receipts, payment on account and bank receipts for the date period in this particular VAT Audit report.

To find the relevant VAT Audit Reports, do the following:

1. Go to the Reports Tab
2. Go to All Folders, on the left-hand side.
3. Search for the folder called “VAT Audit Reports – Cash Accounting” or  “VAT Audit Reports – Accrual Accounting”
4. Sort the list by name so you are able to see all the report by Name, e.g. Box 1

You should go through the reports and review the transactions and VAT amounts for this group of transactions to ensure you are happy with the results.