Exempt from VAT (Box 7)

We have a summary of VAT Rates here.

There are a few different scenarios where VAT is not charged but how these items are reported on the return (specifically box 7) differ slightly.

If it’s zero rated or exempt it would normally still appear on box 7 (total value of purchases and other inputs). If it’s Out of Scope then it won’t feature in box 7 or anywhere else on the VAT return.

In any of the above cases however, no VAT will be reclaimed, so this relates purely to the statistic boxes on the return (boxes 6 and 7).