Quick Overview

Once VAT registered, a business must file regular VAT returns reporting the VAT charged on sales (output VAT) and the VAT paid on purchases (input VAT), and pay HMRC the difference — or claim a refund if input VAT exceeds output VAT.

Who This Guide Is For

This guide is for VAT-registered businesses who want to understand what a VAT return involves.

What You May Need

  • Sales and purchase records covering the VAT period
  • Making Tax Digital-compatible accounting software
  • Your VAT registration number and online account details

Step-by-Step Process

  1. Keep digital VAT records throughout the period, as required under Making Tax Digital.
  2. Total your output and input VAT for the period.
  3. Submit the VAT return to HMRC through compatible software, generally on a quarterly cycle.
  4. Pay any VAT owed by the payment deadline, or claim a refund if you've overpaid.

Important Considerations

Most VAT-registered businesses must keep records and submit returns digitally under Making Tax Digital rules. VAT return and payment deadlines are generally the same, unlike Corporation Tax — it's worth confirming your specific deadlines with HMRC or your accountant.

This guide provides general information only and is not personalised tax advice.