How to File a VAT Return
Every VAT-registered UK business must submit a VAT return quarterly via Making Tax Digital (MTD). This guide explains exactly what each box means, how to calculate your liability, and what happens if you miss the deadline.
Deadline: 1 Month + 7 Days After Period End
Your VAT return and payment are both due 1 calendar month and 7 days after the end of your VAT accounting period. Missing this deadline triggers a penalty points system — accumulate enough points and you'll receive a financial penalty. If you think you may not be able to pay, see our VAT debt help guide immediately.
The 9 VAT Return Boxes Explained
VAT due on sales
Total output tax you charged customers during the period.
VAT due on acquisitions (EU)
VAT on goods acquired from EU countries (post-Brexit: mainly Northern Ireland protocol).
Total VAT due
Box 1 + Box 2. This is your total VAT liability before reclaims.
VAT reclaimed
Input tax on business purchases you can reclaim from HMRC.
Net VAT payable or refund
Box 3 minus Box 4. Pay this to HMRC, or receive a refund if negative.
Total sales (ex VAT)
Your total net turnover for the period, excluding VAT.
Total purchases (ex VAT)
Total net value of all purchases and expenses in the period.
Total goods to EU
Value of goods supplied to other EU countries (primarily NI protocol).
Total goods from EU
Value of goods acquired from EU countries during the period.
Making Tax Digital (MTD) Requirements
Since April 2022, all VAT-registered businesses must use MTD-compatible software to file returns. You cannot submit directly via the HMRC website portal. HMRC-approved options include Xero, QuickBooks, Sage, and FreeAgent.
Calculate Your VAT Before Filing
Before submitting, verify your numbers using our calculator. For example, if your quarterly net sales were £25,000, your Box 1 output tax would be £5,000 VAT on £25,000. If you spent £10,000 on business costs, your reclaimable input tax (Box 4) is £2,000 VAT on £10,000 — meaning your net Box 5 liability to HMRC would be £3,000.