This scenario is for VAT registered businesses, who use the standard accounting method for VAT and complete their returns quarterly.
Simply add up all the sales for the VAT quarter, before VAT. This is your net sales figure and it goes in Box 6 on the VAT return.
Add up all the VAT on those sales. This is your output VAT and goes into Box 1 on the VAT return.
Similarly, add up all the purchases
Add up all the VAT on the purchases. This is your input VAT and goes into Box 4 on the VAT return.
For Box 7 of the VAT return: Add up all the net purchases (excluding VAT), make sure to include any purchases that had VAT at zero percent or that were VAT exempt.
EXCLUDE purchases from unregistered suppliers, as these are out of scope and not to be included on a VAT return.
