If your business is registered for VAT or a similar sales tax, you report to the tax authority at regular intervals. The UK-style return has nine boxes. This guide explains what each one means. It is general information, so follow your tax authority’s guidance for your own situation.
The nine boxes
| Box | What it shows |
|---|---|
| 1 | VAT due on your sales in the period |
| 2 | VAT due on goods acquired from certain other countries |
| 3 | Total VAT due (Box 1 + Box 2) |
| 4 | VAT you can reclaim on your purchases |
| 5 | Net VAT to pay or reclaim (Box 3 − Box 4) |
| 6 | Total value of sales, excluding VAT |
| 7 | Total value of purchases, excluding VAT |
| 8 | Value of supplies of goods to certain other countries |
| 9 | Value of goods acquired from certain other countries |
For most small domestic businesses only Boxes 1, 3, 4, 5, 6 and 7 contain figures.
How the numbers come about
Box 1 is the tax you charged on invoices. Box 4 is the tax you paid on bills and spending that you are entitled to reclaim. Box 5 is the difference: if Box 1 is larger you pay the balance, and if Box 4 is larger you reclaim it. Boxes 6 and 7 are the net values of your sales and purchases. Credit notes reduce the relevant figures.
Standard or cash scheme?
Under the standard approach a sale or purchase belongs to the period of its invoice date. Under a cash accounting scheme it belongs to the period in which it is paid or received. Use whichever scheme you have registered for.
Check before you file
- Make sure all invoices and bills for the period are entered and posted, and that nothing is stuck in draft.
- Check each line has the correct tax rate.
- Compare Box 1 and Box 4 with a tax summary report for the same period.
- If something looks odd, run a tax audit report to see every transaction behind a figure.
- File, record the payment, and then lock the period so the numbers cannot change.
Do it with less stress
AvrioBooks can prepare the nine-box figures from your invoices, bills and bank transactions, show the transactions behind each one and record filing and payment. You then submit the return through your tax authority’s own portal. Use the tax reports to check your figures first.
Keep reading
Business expenses freelancers often forget to claim
Missed expenses mean paying tax you did not need to. These are the everyday costs that slip through, and how to stop them.
17 September 2026 · 5 min read
What’s new in AvrioBooks: reconciliation, reporting, budgets and more
AvrioBooks has grown from simple invoicing into a full accounting platform. Here is a tour of what you can do today.
5 October 2026 · 4 min read
A 10-step month-end close checklist for small businesses
Closing your books each month takes an hour or two once it becomes a habit. Here are the ten steps that catch most problems before they grow.
1 October 2026 · 6 min read