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Filling in Your VAT Return
Filling in Your VAT Return
October 2011
Foreword
This notice cancels and replaces Notice 700/12 (March 2002). Details of any
changes to the previous version can be found in paragraph 1.1 of this notice.
Introduction
You can access details of any changes to this notice since October 2010 on our
internet website hmrc.gov.uk.
This notice and others mentioned are available on our website. Please ensure that
you read the notices relevant to your circumstances before you complete your
VAT return.
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You can find out more about Online VAT returns on the HMRC website. The benefits
of online VAT returns include:
There are legal conditions that apply to submitting VAT returns online and receiving
the extra time for paying electronically. These are on the HMRC website under Legal
conditions, Submit a return conditions and Incentives for making an electronic
return and paying VAT due by an approved electronic method.
Section 5 of this notice contains more information.
This section gives a brief summary of some of the common terms you will come
across as you read this notice. But, if you are completing a VAT return for the first
time, it might be helpful to look at the VAT guidance.
2.1 Supplies
This is the term for the sale of goods or services which you make by way of business.
All goods and services that are subject to VAT (at the standard, reduced or zero rate)
are called taxable supplies.
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2.7 Imports
These are goods and related costs that you purchase for your business from
suppliers outside the European Community (EC). Any VAT that you pay on these
goods can be reclaimed as input VAT, subject to the normal rules (see Notice 702
Imports).
2.8 Acquisitions
These are the goods that you purchase from a VAT-registered business in another
EC Member State and are dispatched or removed into the UK. You may have to
account for VAT in the UK (referred to as acquisition tax), but you can also recover
that VAT as input VAT, subject to normal rules. For further information and details of
EC Member States see Notice 725 The single market.
2.9 Exports
These are goods that you supply to customers outside the EC. Such supplies are
normally be zero-rated, see Notice 703 VAT: Export of goods from the United
Kingdom.
2.10
Dispatches or removals
These are goods that you supply to customers in other EC Member States which are
dispatched or removed from the UK. Goods leaving the UK to go to other Member
States are not called 'exports', but are referred to as dispatches or removals. The
term export is only used for goods leaving the UK to go to countries outside the EC.
The requirements shown here apply to both paper and online VAT returns.
If you are using a special VAT accounting scheme such as the Flat Rate Scheme for
small businesses, Cash Accounting, Annual Accounting, Margin Schemes for second
hand goods, works of art, antiques and collectors items, Payments on Account, or
reverse charge accounting, please read section 4 before filling in your return.
If you use a retail scheme, please see Notice 727 Retail Schemes.
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The paper version of the VAT return is designed to be read by machine. Please
follow these rules so that the information declared can be easily read.
fuel used for private motoring where VAT is accounted for using a scale
charge (see Notice 700/64 Motoring expenses)
the sale of stocks and assets
goods you take out of the business for your own private use
VAT due under reverse charge accounting and the gold scheme (see
paragraph 4.6)
supplies to your staff
gifts of goods that cost you more than 50, excluding VAT
supplies of goods to customers not registered for VAT in another Member
State including distance sales from the UK to another Member State
where supplies are below the distance selling threshold in that Member
State
distance sales to the UK which are above the UK distance selling
threshold or, if below the threshold but the overseas supplier opts to
register for VAT in the UK
commission received for selling something on behalf of someone else
VAT shown on self-billed invoices issued by your customer, and
supplies of installed or assembled goods in the UK where an overseas
supplier is registered for VAT here (see Notice 725 The single market for
more details).
Points to remember when filling in box 1:
include VAT on the full value of the goods where you have taken
something in part exchange
leave out any amounts notified to you as assessments by us
you can sometimes include VAT underdeclared/overdeclared on previous
returns but see paragraph 6.6 for the special rules that apply, and
you must not declare zero-rated exports or supplies to other EC Member
States unless certain conditions are met (see Notice 703 VAT: Exports of
goods from the United Kingdom or Notice 725 The single market).
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VAT you have paid under the reverse charge procedure or the gold
scheme (see paragraph 4.6)
VAT you can reclaim on acquisitions of goods from VAT registered
suppliers in other EC Member States (this must correspond with the
amount declared within box 2)
VAT you pay on imports from countries outside the EC (provided you have
received the relevant import VAT certificate)
VAT you are claiming back as bad debt relief, see Notice 700/18 Relief
from VAT on bad debts
VAT you pay on removals from a warehousing regime or a free zone
VAT shown on self-billed invoices issued by you.
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Take the figures in boxes 3 and 4. Deduct the smaller from the larger and
enter the difference in box 5.
This figure will be calculated automatically if you are completing your
return online.
If the figure in box 3 is more than the figure in box 4, the difference is the
amount you must pay. If the figure in box 3 is less than the figure in box 4 we
will credit your account and repay the balance, subject to any enquiries we
may need to make.
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imports
acquisitions from VAT registered suppliers in other EC Member States
(that is any figure entered in box 9)
'reverse charge' transactions (see paragraph 4.6)
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Show the total value of all supplies of goods to other EC Member States and
directly related costs, such as freight and insurance, where these form part of
the invoice or contract price. This must include the value of any goods
dispatched from the UK to a destination in another Member State, even if no
actual sale is involved or the sale is being invoiced to a person located
outside the EC. Leave out any VAT. See Notice 725 The single market for
further information on trading within the EC.
You must include the value of supplies such as:
However, you do not include in box 8 the value of any of the following:
services related to the supply of goods that have been invoiced separately
separate supplies of services, such as legal or financial services
the goods themselves when you are supplying processing work, or
sales made in the UK to unregistered customers in another EC Member
State where the supplies are not distance sales.
Remember: Figures entered in this box must also be included in the box 6
total.
3.10
Filling in box 9
acquisitions made within the return period in which the tax point occurs,
and
goods installed or assembled in the UK where those goods have been
dispatched from another EC Member State.
However, you do not include in box 9 the value of any of the following:
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Remember: Figures entered in this box must also be included in the box 7
total.
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However, you can recover VAT on any single purchase of capital goods of 2,000 or
more, including VAT, and VAT on stocks and assets on hand at registration. For
details, see Notice 733 Flat Rate Scheme for small businesses.
You should also use this box to claim Bad Debt Relief and to account for reverse
charge transactions (see paragraph 4.6).
Box 6 Total value of sales
Enter the turnover to which you applied your flat rate percentage, including VAT. You
should also include the value, excluding VAT, of any supplies accounted for outside
the flat rate scheme, such as the sale of any capital goods on which you have
reclaimed input VAT, and reverse charge transactions. Also include any amount you
have entered in box 8.
Box 7 Total value of purchases
Usually there will be no figure in this box unless you have bought a capital good
costing more than 2,000 (including VAT) and you are claiming the input VAT in box
4. In which case, enter the purchase price, excluding VAT. Also include in box 7 any
amount you have entered in box 9 and reverse charge transactions.
Further information about the scheme is available in Notice 733 Flat Rate Scheme for
small businesses.
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Gold
Services
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You (or your accountant or other agent) can opt to use either the free HMRC VAT
Online service or commercial software. You can benefit from the built-in safeguards
which include:
You will also be able to make payment by Direct Debit and you may get additional
time in which to submit your return and make payment.
To enrol for this service go to VAT.
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Then
Further information
a paper return
and pay by
cheque
a paper return
and pay
electronically
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To ensure that your payment is received you must use the correct HMRC bank
account details and paying-in slips.
However you pay, if the net VAT payable to us is less than 1, you do not need to
pay us at all. Do not carry forward amounts of under 1 to your next VAT return.
For full details about the payment options available, see below or go to How to pay
VAT.
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Please note:
5.3.4 CHAPS
The CHAPS system enables you to tell your bank or building society to make an
immediate payment. You know for certain that payment will reach us on the day the
bank makes the payment.
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CHAPS payments are more expensive than other payment methods but may be of
benefit if you make very large payments. We receive same day value so long as you
initiate payment within the time specified by your bank (usually between 9.00am and
3.00pm). Please advise your bank to quote your VAT registration number when
making payment.
To allow for possible delays in bank processing (for which HMRC is not responsible)
please allow at least three bank working days for your payment to reach us. Bank
working days are Monday to Friday excluding bank holidays.
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5.3.7 By post
If you are not required to submit your VAT return online and pay electronically, you
can still pay by posting us a cheque. Cheque payments made by post are treated as
being received by us on the date when cleared funds reach our bank account not
the date when we receive the cheque. This means that you must allow sufficient time
for the payment to reach us and clear into our bank account, no later than the due
date shown on your paper VAT return. A cheque takes three bank working days to
clear. Bank working days are Monday to Friday excluding bank holidays. To allow for
possible postal delays (for which HMRC is not responsible) please allow at least
three working days for the cheque payment to reach us and a further three days for
the payment to clear our bank account.
If your cheque payment does not clear by the due date shown on your paper VAT
return, you may be liable to a surcharge for late payment.
If you use this method:
If you do not have a return envelope, please send your return and payment to:
VAT Controller
VAT Central Unit
BX5 5AT
If you post your return from abroad please add United Kingdom below the post
code.
Where exceptionally you need to use a private courier service to deliver your return
please use the following address:
HM Revenue & Customs
Alexander House
Southend
SS99 1AA
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08-32-00
11963155
HMRC VAT
If your bank asks for the address of the bank to which payment is being made please
use
Citi
Citigroup Centre
Canada Square
Canary Wharf
London
E14 5LB
If you are making a payment from an overseas bank account our International Bank
Account Number (IBAN) is:
Account details
Swift Bank Identifier Code (BIC)
CITIGB2L
GB25CITI0832001 1963155
Account Name
HMRC VAT
Please note: Where an IBAN is shown you must give this number as well as the
SWIFT BIC.
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then
10,000 or less, or
Net errors exceeding 50,000 and those above 10,000 that exceed 1% of the box 6
amount must be separately notified.
Further information is contained in Notice 700/45 How to correct VAT errors and
make adjustments or claims.
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For information on how to cancel your VAT registration please see Cancelling your
VAT registration on our website.
If the total in box 8 is more than the total in box 6, or the total in
box 9 is more than the total in box 7, you may have transposed
the box figures in error.
When you complete your online return, please check that you
have entered the correct figures before you click on submit, as
you cant amend the return online after your have submitted it.
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Have you included any errors you may have found on previous
VAT returns? (see paragraph 6.6).
Make sure you have not included any correspondence with your
VAT return. Correspondence must be sent separately to the
appropriate office to ensure it is dealt with promptly. Contact the
VAT Helpline on 0845 010 9000 for help on where to send other
correspondence.
Have you provided your bank with our VAT account details?
They are:
Sort Code: 08-32-00
Account Number: 11963155
Account Name: HMRC VAT
see also paragraph 5.5
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We may check information we receive about you with what is already in our records.
This can include information provided by you, as well as by others, such as other
government departments or agencies and overseas tax and customs authorities. We
will not give information to anyone outside HM Revenue & Customs unless the law
permits us to do so. For more information go to hmrc.gov.uk and look for Data
Protection Act within the Search facility.
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