A VAT return is a form telling HMRC how much VAT you charged your customers and how much you were charged by your suppliers. The difference between those two is what you pay or reclaim. Everything else about it is bookkeeping: the return is a set of totals, and the work is making sure each transaction landed in the right total at the right rate before the quarter closes.
What the form is actually asking
Nine boxes, and only two of them are the tax. Box 1 is the VAT due on your sales and other outputs. Box 4 is the VAT you are reclaiming on purchases and other inputs. Box 3 is the total VAT due, which is boxes 1 and 2 added, and box 5 is the net VAT to pay to HMRC or reclaim. Boxes 6 and 7 are not tax at all: they are the total value of sales and of purchases excluding VAT, which is why a zero-rated sale still appears on the return even though it carries no tax.
A worked quarter
Say you invoiced £24,000 including VAT at the standard rate over the quarter and spent £6,000 including VAT on standard-rated purchases. The sales split into £20,000 net and £4,000 VAT; the purchases into £5,000 net and £1,000 VAT. Box 1 is £4,000, box 4 is £1,000, box 6 is £20,000, box 7 is £5,000, and box 5 is the £3,000 you owe. The VAT calculator on this site does that split on any single figure, and the quarter is that arithmetic repeated and totalled.
How often, and what happens if there is nothing to declare
You usually send a return every three months, and a VAT-registered business must send one even with no VAT to pay or reclaim. A nil return is a real obligation rather than a formality: missing it earns a penalty point exactly as a late return with figures on it would. The deadline for submitting online is normally one calendar month and 7 days after the accounting period ends, which is also the deadline for the money to reach HMRC.
Questions people ask about what is a vat return
What is the difference between a VAT return and a tax return?
A VAT return reports VAT charged and reclaimed for an accounting period, usually quarterly. A Self Assessment or Corporation Tax return reports profit for a year. Different tax, different deadline, different form.
Do I have to file a VAT return if I had no sales?
Yes. A VAT-registered business must submit a return even with no VAT to pay or reclaim, and a late nil return still earns a penalty point.
How often is a VAT return due?
Usually every three months. The deadline for submitting online is normally one calendar month and 7 days after the end of the accounting period.