How is the VAT return calculated for “Accrual VAT method”?

Zumzum Financials Knowledge Base

    How is the VAT return calculated for “Accrual VAT method”?

    Many businesses using Zumzum Financials are VAT registered which means that each month or quarter they must produce and reconcile their VAT Return. This help article will assist you with the processes involved in reconciling your VAT Return.

    How the VAT Return calculates

    When using the Standard VAT (accrual) scheme, the Zumzum Financials VAT Return calculates input and output tax from:

    • The VAT element of your sales and purchase invoices.
    • The VAT element of your sales and purchase credits.
    • The VAT element of your bank, cash and credit card receipts.
    • The VAT element of your bank, cash and credit card payments.
    • The value of any journal entries posted to the Sales Tax Control Account or the Purchase Tax Control Account using a tax code that’s flagged to be included in the VAT Return.

    The below table highlights the transactions that are included in each box of your VAT return.

    Box Transaction Type Tax Type
    Box 1 Sales Invoice (SI) Standard Rate & Lower Rate Tax
    Box 1 Purchase Invoice (PI) Reverse Charges
    Box 1 Sales Credit (SC) Standard Rate & Lower Rate
    Box 1 Purchase Credit (PC) Reverse Charges
    Box 1 Bank Receipt (BR) Standard Rate & Lower Rate, as well as Reverse Charges.
    Box 1 Bank Payment (BP) Reverse Charges
    Box 1 Journal Credit (JC) Standard Rate & Lower Rate, as well as Reverse Charges]
    Box 1 Journal Debit (JD) Reverse Charges
    Box 2 Purchase Invoice (PI) EC Acquisitions Goods Standard Rate & EC Acquisitions Services Standard Rate.
    Box 2 Purchase Credit (PC) EC Acquisitions Goods Standard Rate & EC Acquisitions Services Standard Rate.
    Box 2 Bank Payment (BP) EC Acquisitions Goods Standard Rate & EC Acquisitions Services Standard Rate.
    Box 2 Journal Debit (JD) EC Acquisitions Goods Standard Rate & EC Acquisitions Services Standard Rate.
    Box 2 Bank Receipt (BR) EC Acquisitions Goods Standard Rate & EC Acquisitions Services Standard Rate.
    Box 2 Journal Credit (JC) EC Acquisitions Goods Standard Rate & EC Acquisitions Services Standard Rate.
    Box 3 Auto-calculation. Box 1 value minus Box 2 value.
    Box 4 Purchase Invoice (PI) Standard Rate & Lower Rate plus EC Acquisitions Goods Standard Rate & EC Acquisitions Services Standard Rate as well as
    Reverse Charges.
    Box 4 Purchase Credit (PC) Standard Rate & Lower Rate
    plus EC Acquisitions Goods Standard Rate & EC Acquisitions Services Standard Rate as well as
    Reverse Charges
    Box 4 Bank Payment (BP) Standard Rate & Lower Rate plus EC Acquisitions Goods Standard Rate / EC Acquisitions Services Standard Rate as well as Reverse Charges.
    Box 4 Bank Receipt (BR) EC Acquisitions Goods Standard Rate & EC Acquisitions Services Standard Rate as well as Reverse Charges.
    Box 4 Journal Debit (JD) Standard Rate & Lower Rate plus EC Acquisitions Goods Standard Rate / EC Acquisitions Services Standard Rate as well as Reverse Charge.
    Box 4 Journal Credit (JC) EC Acquisitions Goods Standard Rate & EC Acquisitions Services Standard Rate plus Reverse Charges.
    Box 5 Auto-calculation. Box 3 minus Box 4.
    Box 6 Sales Invoice (SI) Standard Rate & Lower Rate plus Zero Rated & Exempt Transactions as well as EC Sales Goods & EC Sale Services.
    Box 6 Purchase Invoice (PI) Reverse Charges
    Box 6 Sales Credit (SC) Standard Rate & Lower Rate plus Zero Rated & Exempt Transactions as well as EC Sales Goods & EC Sale Services
    Box 6 Purchase Credit (PC) Reverse Charges
    Box 6 Bank Receipt (BR) Standard Rate & Lower Rate plus Zero Rated & Exempt Transactions. As well as EC Sales Goods & EC Sale Services plus
    Reverse Charges.
    Box 6 Bank Payment (BP) EC Sales Goods & EC Sale Services plus Reverse Charges.
    Box 6 Journal Debit (JD) EC Sales Goods & EC Sale Services plus Reverse Charges.
    Box 6 Journal Credit (JC) Standard Rate & Lower Rate plus Zero Rated & Exempt Transactions. As well as EC Sales Goods & EC Sale Services plus Reverse Charges.
    Box 7 Purchase Invoice (PI) Standard Rate & Lower Rate plus Zero Rated & Exempt Transactions.
    As well as EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated. Also includes EC Acquisitions Services Standard Rate & EC Acquisitions Services Zero Rated plus Reverse Charges.
    Box 7 Purchase Credit (PC) Standard Rate & Lower Rate plus Zero Rated & Exempt Transactions. As well as EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated.
    Also includes EC Acquisitions Services Standard Rate & EC Acquisitions Services Zero Rated plus Reverse Charges.
    Box 7 Bank Payment (BP) Standard Rate & Lower Rate plus Zero Rated & Exempt Transactions.
    As well as EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated plus EC Acquisitions Services Standard Rate / EC Acquisitions Services Zero Rated. Also includes Reverse Charges.
    Box 7 Bank Receipt (BR) EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated plus EC Acquisitions Services Standard Rate & EC Acquisitions Services Zero Rated as well as Reverse Charges.
    Box 7 Journal Debit (JD) Standard Rate & Lower Rate plus Zero Rated & Exempt Transactions. As well as EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated also including EC Acquisitions Services Standard Rate & EC Acquisitions Services Zero Rated plus Reverse Charges.
    Box 7 Journal Credit (JC) EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated plus EC Acquisitions Services Standard Rate & EC Acquisitions Services Zero Rated as well as Reverse Charges.
    Box 8 Sales Invoice (SI) EC Sales Goods.
    Box 8 Bank Receipt (BR) EC Sales Goods.
    Box 8 Journal Credit (JC) EC Sales Goods.
    Box 8 Sales Credit (SC) EC Sales Goods.
    Box 8 Bank Payment (BP) EC Sales Goods.
    Box 8 Journal Debit (JD) EC Sales Goods.
    Box 9 Purchase Invoice (PI) EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated.
    Box 9 Bank Payment (BP) EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated.
    Box 9 Journal debit (JD) EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated.
    Box 9 Purchase Credit (PC) EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated.
    Box 9 Bank Receipt (BR) EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated.
    Box 9 Journal Credit (JC) EC Acquisitions Goods Standard Rate & EC Acquisitions Goods Zero Rated.
    in TransactionsVAT Return Tags: Accrual VATVAT