The VAT Return

If you haven't already started your VAT Return, you can find out everything you need to know in our Help Centre. 

---

How the VAT Return calculates

Sage 50 Accounts calculates the VAT Return based on your VAT scheme. When using the VAT Cash Accounting Scheme, your return calculates based on the following VAT elements:

• Bank, cash and visa receipts and payments
• Journal entries posted with an appropriate tax code
• The value of any discounts

The following table explains how each box on the VAT Return calculates:

Box	Details	Tax code included	Transactions included
1	VAT on your sales.	T1, T2, T3, T5, T15, T17, T18, T20, T21, T24, T25, T26	SR, SA, BR, CR, VR, SP, JC. If you use Foreign Trader revaluation postings, or CIS reverse charge postings then SI and SC transactions are also included
2	VAT on any EC acquisitions.	T8	PI, PC, BP, CP, VP, PR, JD
3	Total VAT due, the total of boxes 1 and 2 above.	N/A	N/A
4	Total VAT on your purchases.	T0, T1, T2, T3, T5, T8, T15, T17, T18, T20, T24, T25	PP, PA, BP, CP, VP, PR, JD. If you use Foreign Trader revaluation postings, or CIS reverse charge postings then PI and PC transactions are also included
5	The net amount of VAT that you'll pay to HMRC, or reclaim.	N/A	N/A
6	Value of your sales excluding VAT.	T0, T1, T2, T3, T4, T5, T15, T20, T21, T22, T23, T24, T25, T26	SR, SA, BR, CR, VR, SP, SD, JC. If you use Foreign Trader revaluation postings, or CIS reverse charge postings then SI and SC transactions are also included
7	Value of your purchases excluding VAT.	T0, T1, T2, T3, T5, T7, T8, T14, T15, T16, T17, T18, T19, T20, T21, T23, T24, T25, T26	PP, PA, BP, CP, VP, PR, PD, JD. If you use Foreign Trader revaluation postings, or CIS reverse charge postings then PI and PC transactions are also included
8	Value of your EC sales excluding VAT.	T4	SI, SC, BR, CR, VR, JC
9	Value of your EC purchases excluding VAT.	T7, T8	PI, PC, BP, CP, VP, JD