Indirect Tax - VAT Return Question

Hi,

When completing a VAT return and your told that in a previous VAT return an error was made that you have to correct. What boxes do you use as I've noticed in some Mock exams it notes that either Box 1 or Box 4 would have been acceptable. Are there set rules for what boxes to use for whether you under or over claimed input tax in the previous quarter, or if you over or under paid output tax in the previous quarter?

Thanks in advance.

Comments

  • tillyjbctillyjbc Feels At Home Posts: 45Registered
    Hi

    If output tax was over charged in the last quarter, you add the amount to Box 4 of current quarter. If output tax was under charged in the last quarter, you add the amount to Box 1 of current quarter.

    If input tax was over claimed in the last quarter, you add the amount to Box 1 of current quarter. If input tax was under claimed last quarter, you add the amount to Box 4 of current quarter.

    Think of how the VAT control a/c would look if you made the correction, you add to whichever side would correct it (you don't deduct like you do for credit notes).

    If there are several corrections, the net error (difference between total output/input tax errors) is added to whichever side the balance is.

    I hope this is right (as I've just done a VAT return!!) and I hope this helps.
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