This question has been discussed almost two years ago but as it is still not clear I thought to raise it again.
Are supplies from non VAT registered suppliers to be included in the VAT Return box 7?
I think this question is especially important for cases when the supply is VATable (standard or reduced rate) and affects Box 4. My concern is that including these supplies into Box 7 may later on be brought up by HMRC misleading their credibility checks (the purchases:sales ratio is abnormal, VAT repayments are being claimed where none were before, or your VAT repayments are higher than normal, etc.). In any case, it is confusing.
A definitive answer with supporting references if possible please.