V5.211 VAT Account

Regulations made under VATA 1994, Sch 11, para 6(1) provide that taxable persons must keep and maintain an account known as the 'VAT Account'1. This account is divided into separate parts each relating to a prescribed accounting period. Each such part is sub-divided into two portions known as 'the VAT payable portion' and 'the VAT allowable portion'2.

VAT payable portion

The VAT payable portion represents a calculation of the VAT due required to be shown in Boxes 1 and 2 of the trader's VAT return3. It comprises the following elements.

A total of the output tax due from the taxable person for the prescribed accounting period concerned4

From IP completion day, output tax due for a prescribed accounting period in respect of supplies and acquisitions of goods in Northern Ireland5 made by the taxable person is calculated in accordance with the provisions described in V3.501. However, an estimate may be used in the circumstances described in V3.505. Separate totals are required in respect of supplies (box 1) and acquisitions (box 2).

A total of the tax which the taxable person is required to account for and pay on behalf of the supplier6

This also includes any VAT due in respect of imports of low value goods into the UK by a taxable person from 1 January 20217.

Every correction allowed in connection with output tax understated or overstated in a prior period8

Output tax declared in prior periods may be adjusted under this head in the circumstances described in V3.506. Adjustments which do not

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial