VAT return Box 5 is negative number

[Eric1]

We always reclaim VAT as we export. Just finished preparing our first quarter’s VAT return. However, whereas the Box 4 entry for “VAT reclaimed on purchases and other inputs” is a positive number, the same number which appears in Box 5 (NET VAT to be reclaimed from Customs) has become negative - why is this please and surely this is incorrect?

[druidude]

I have the same query but in the opposite direction. Even though we owe the revenue money it says amount to be reclaimed as a positive number even though it’s the same amount we owe them. I have done duplicate calculations one not use my quickfile so I know what we owe them. I just presume a positive number means we pay them and a negat number indicates a refund. We shall see.

[QFMathew]

Hi @Eric1

Box 4 will be a positive number as it’s a sum of the VAT paid out. If Box 5 is negative, then this would be the amount being reclaimed.

If you click the “Download Calculations” button at the bottom of the return, you will see a breakdown of these figures to see how they were calculated. We always recommend downloading the calculations before submitting the return, just to be sure everything is correct.

As an example, I’ve mocked up this return:

This shows £13.60 has been paid out to suppliers as VAT, and £12.55 is being reclaimed from HMRC.

@druidude - As above, I would recommend checking the calculations to see how these are calculated. But if box 5 is a positive number, this is the amount you will pay to HMRC.

[Eric1]

Thank you very much for your help!