A UK VAT return contains nine boxes that summarise your business sales, purchases, VAT charged, and VAT reclaimed during a VAT accounting period. Understanding what goes into each box helps you check your figures before submitting your return and avoid costly mistakes.
For the 2026/27 tax year, businesses must continue following HMRC VAT rules, including the current VAT registration threshold of £90,000 taxable turnover. The standard VAT rate remains 20%, with a reduced rate of 5% and zero rate of 0% applying to specific goods and services.
Most VAT-registered businesses submit returns through Making Tax Digital (MTD)-compatible software, which calculates many figures automatically from your digital records. However, you are still responsible for checking that every VAT return box contains the correct information.
In this guide, we explain every VAT return box, what information belongs in each one, and how a small business would complete a VAT return using a worked example.
What Are VAT Return Boxes?
VAT return boxes are the nine sections on a UK VAT return where businesses report their VAT activity to HMRC.
The boxes are divided into two main groups:
VAT calculation boxes (Boxes 1–5)
These determine whether you owe VAT to HMRC or whether HMRC owes you a repayment.
- Box 1: VAT charged on sales
- Box 2: VAT due on EU acquisitions (mainly Northern Ireland situations)
- Box 3: Total VAT due
- Box 4: VAT reclaimed on purchases
- Box 5: VAT payable or reclaimable
Sales and purchase value boxes (Boxes 6–9)
These show the value of transactions excluding VAT.
- Box 6: Total sales excluding VAT
- Box 7: Total purchases excluding VAT
- Box 8: EU goods supplied
- Box 9: EU goods acquired
For many businesses in Great Britain, Boxes 2, 8 and 9 will usually be zero because they mainly apply to specific Northern Ireland/EU goods transactions.
VAT Return Box 1: VAT Due on Sales and Other Outputs
What goes in Box 1?
Box 1 contains the VAT you charged customers on taxable sales during the VAT period. This includes standard-rated sales at 20%, reduced-rated sales at 5%, VAT due under reverse charge rules, certain import VAT adjustments, and other VAT due amounts. It does not include zero-rated sales because no VAT is charged.
Example
A business sells services of £10,000 + VAT at 20%. VAT charged: £10,000 × 20% = £2,000. The business enters Box 1 = £2,000.
VAT Return Box 2: VAT Due on EU Acquisitions
What goes in Box 2?
Box 2 is used for VAT due on acquisitions of goods from EU member states, mainly for Northern Ireland businesses trading under the Windsor Framework arrangements. Most businesses in Great Britain will enter Box 2 = £0.
Example
A Northern Ireland business buys goods from an EU supplier: goods value £5,000, VAT due £1,000. Reported as Box 2 = £1,000.
VAT Return Box 3: Total VAT Due
What goes in Box 3?
Box 3 is the total VAT due to HMRC. Calculation: Box 3 = Box 1 + Box 2. Usually your accounting software calculates this automatically.
Example
Box 1: £2,000, Box 2: £0. Therefore Box 3 = £2,000.
VAT Return Box 4: VAT Reclaimed on Purchases and Other Inputs
What goes in Box 4?
Box 4 contains VAT you can reclaim on eligible business expenses, such as equipment, business software, stock, office supplies and professional services. You must have valid VAT evidence, such as a VAT invoice, to support your claim.
Example
Computer equipment £1,000 + VAT (£200); accounting software £100 + VAT (£20). Total reclaimable VAT: £220. Therefore Box 4 = £220.
VAT Return Box 5: Net VAT to Pay or Reclaim
What goes in Box 5?
Box 5 shows the final VAT position. Formula: Box 5 = Box 3 − Box 4. If Box 3 is higher, you pay HMRC. If Box 4 is higher, you may receive a VAT repayment.
Example
Box 3: £2,000, Box 4: £220. Calculation: £2,000 − £220 = £1,780. The business pays £1,780 to HMRC.
VAT Return Box 6: Total Value of Sales
What goes in Box 6?
Box 6 contains the total value of sales and other outputs excluding VAT. Include standard-rated, reduced-rated, zero-rated and exempt sales where applicable. Do not include the VAT amount.
Example
Product sales £10,000, VAT £2,000. Box 6 records only £10,000.
VAT Return Box 7: Total Value of Purchases
What goes in Box 7?
Box 7 shows the total value of purchases and expenses excluding VAT, such as stock purchases, equipment, business costs and services.
Example
Equipment £1,000, software £100. Total: Box 7 = £1,100.
VAT Return Box 8: Goods Supplied to EU Member States
What goes in Box 8?
Box 8 records the value of goods supplied from Northern Ireland to EU VAT-registered businesses. This box mainly applies to businesses affected by Northern Ireland/EU goods rules. Many UK businesses will enter Box 8 = £0.
VAT Return Box 9: Goods Acquired from EU Member States
What goes in Box 9?
Box 9 records the value of goods acquired from EU member states, excluding VAT. Again, this mainly applies to Northern Ireland businesses. Most Great Britain businesses will normally enter Box 9 = £0.
Worked Example: Completing a VAT Return for a Small Business
Imagine a small UK business during one VAT quarter.
Sales: services sold £20,000, VAT charged at 20% = £4,000.
Purchases: equipment £2,000 + VAT (£400); software £500 + VAT (£100). Total reclaimable VAT: £500.
VAT Return Boxes: Box 1: £4,000 | Box 2: £0 | Box 3: £4,000 | Box 4: £500 | Box 5: £3,500 | Box 6: £20,000 | Box 7: £2,500 | Box 8: £0 | Box 9: £0.
The business owes HMRC: £3,500 VAT.
Common VAT Return Box Mistakes
1. Putting VAT-inclusive sales into Box 6
A common mistake is entering £12,000 including VAT instead of £10,000 excluding VAT. Remember: Box 6 records sales value excluding VAT.
2. Claiming VAT without valid evidence
You should keep proper VAT invoices and records supporting reclaim claims.
3. Forgetting reverse charge transactions
Some services bought from overseas suppliers may require reverse charge treatment.
4. Confusing Box 3 and Box 5
Remember: Box 3 is total VAT due; Box 5 is the final amount payable or reclaimable.
5. Ignoring zero-rated sales
Zero-rated sales have no VAT charged, but they may still need reporting in turnover figures.
VAT Return Deadlines and Penalties Basics
A VAT return is normally due 1 calendar month and 7 days after the end of your VAT accounting period. You must submit the return and pay any VAT due by the deadline. Late VAT return penalties use a points-based system. Businesses accumulate points for late submissions, and reaching the penalty threshold can result in a financial penalty. Late payment penalties may also apply depending on how late payment is made.
VAT Return Boxes FAQ
1. How many boxes are on a UK VAT return?
A UK VAT return has nine boxes covering VAT charged, VAT reclaimed, sales, purchases, and EU goods transactions.
2. What goes in VAT Return Box 1?
Box 1 contains VAT charged on taxable sales and other outputs during the VAT period.
3. What is VAT Return Box 5?
Box 5 shows the final VAT amount you must pay HMRC or the amount you may reclaim.
4. Do I need to complete all nine VAT return boxes?
Yes. Even if some boxes do not apply, they should be completed correctly, usually with zero values where appropriate.
5. What VAT rate should I use for calculations?
The main UK VAT rates are: standard rate 20%, reduced rate 5%, zero rate 0%. The correct rate depends on the goods or services supplied.
Educational information and estimates. These tools do not submit VAT returns or determine the treatment of a specific transaction.