Evopos can produce VAT Returns for your business. They can be produced for any period but it is normally Quarterly or Monthly depending on what you have requested with the Tax office.


From April 2019 these need to be sent digitally via the UK government's  MTD (Making Tax Digital) system.


The below shows how each figure on the VAT Return is calculated:


Box 1 - VAT due in this period on SALES and other outputs

This is the total Tax for all sales invoices with an Invoice date dated in the period and an a Sales_Type of 'INVOICE' (not INTERNAL invoices)

PLus

Vat on Used Units sold in that period. This is calculated by working out the Margin based on the margin at the rate specified in the Used Unit Tax record. Note if the margin is negative eg: bought for more than sold then that unit should have zero Used Unit Vat due

 

Box 2 - VAT due in this period on ACQUISITIONS

This is the total Tax of Purchase Transactions invoices with the following criteria:

  • Where the Invoice Date is Dated in that period, plus
  • Where the Contact record of the Purchase Transaction has the character 'E' in the Area field, plus
  • Where the Tax rate Name of the Purchase Transaction does not contain the text 'SCOPE' anywhere within the Tax Name, plus
  • Where the Nominal code of the Purchase Transaction does not begin with '07', '08' or '09'


Box 3 - Total VAT due

The total of Box 1 and Box 2 above

 

Box 4 - VAT reclaimed in this period on PURCHASES

This is the total Tax of Purchase Transactions invoices where the Invoice Date is Dated in that period

Note: If there is an amount in Box 2, then it will also be claimed back here as this contains all purchases.


Box 5 - Net VAT to be paid to HMRC or reclaimed by you

The total of Box 3 less the total of box 4


Box 6 - Total value of SALES and all other outputs

This is the total Net (excl VAT) for all sales invoices with an Invoice date dated in the period and an a Sales_Type of 'INVOICE' (not INTERNAL invoices)


Box 7 - Total value of PURCHASES and all other inputs 

This is the total Net (excl VAT) of Purchase Transactions invoices with the following criteria:

  • Where the Invoice Date is Dated in that period, plus
  • Where the Contact record of the Purchase Transaction does not have the character '#' in the Area field, plus
  • Where the Nominal code of the Purchase Transaction does begin with '07', '08' or '09'

 

Box 8 - Total value of (EU) SUPPLIES and related costs

This is the total Net (excl VAT) for all sales invoices with the following criteria:

  • Where the Invoice date is dated in the period
  • Where the Sales_Type field is 'INVOICE' (not INTERNAL invoices)
  • Where the Contact record of the Sales Invoice has the character 'E' in the Area field


Box 9 - Total value of (EU) ACQUISITIONS and related costs

This is the total Net (excl VAT) of Purchase Transactions invoices with the following criteria:

  • Where the Invoice Date is Dated in that period, plus
  • Where the Contact record of the Purchase Transaction does not have the character 'E' in the Area field, plus
  • Where the Nominal code of the Purchase Transaction does begin with '07', '08' or '09'


Points to watch regarding VAT

The following points should ensure that the VAT is calculated correctly


Units

  • Any unit under the Used Vehicle VAT scheme must have a specific Tax Code set which is the only one to contain the text 'USED'. This will not put any VAT on the Purchase Transaction when buying and not put any VAT on the Sales Invoice when selling, but will claim the VAT on the profit separately on the Used Unit stock book when the unit is sold 
  • If the unit is purchased from a VAT registered entity then the tax code can be set to Standard rate which will claim the VAT on the purchase price when buying and pay the VAT on the selling price when selling.
  • The Tax Code for Used units should have Buy = 0%, Sell = 0% and Special = Current Rate (20% as at 1 Jan 2019)


Sales

  • Make sure every item being sold has the correct Tax code and rate set
  • If selling to the EU make sure the Contact record has E in the Area field prior to creating the invoice and it should change the VAT to zero


Purchases

  • If purchasing from the EU make sure the Contact record has E in the Area field prior to creating the invoice and it should change the VAT to zero
  • Certain purchases should not be included in box 7 such as Wages, PAYE, NIC, Insurance claims etc. To exclude these, on the contact record fro the transaction ensure the character '#' is in the Contact Area field. Note: This is not required for Purchase Transactions beginning with '07', '08' or '09' as these are also not included.


General

  • Make sure you do not date any Sales Invoices or Purchase Transactions in a prior period for which the VAT Return has already been produced. There is a setting in Evopos where you can select not to allow Transactions to be dated prior to a certain date (Settings / System / Accounts / No Trans Before).