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VAT Return - Box 7

VAT Return - Box 7

Didn't find your answer?

"Total Value of purchases and all other inputs excluding any VAT"

I have checked HMRC website but I dont feel I have a definitive enough answer:

If i have exempt purchases e.g. Insurance, should I included it in box 7?

If i have a purchase from a non VAT registered business, should i include it in box 7?

Thanks for any help.

Replies (8)

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By emilys_lake
14th Dec 2012 15:51


1. Exempt purchases - although these purchases don't have VAT, they're still included in Box 7 of the Return. 

2. Purchases from a non-VAT registered business -  Whatever VAT rate is on these purchases, they would still be shown in Box 7, UNLESS they're oustside the scope of VAT for some reason.  (I think that you can still claim VAT on these purchases (depending on what they are) - VAT experts please correct me if this is wrong :)  )

All purchases -except for items which are OUT OF SCOPE- should be shown on the VAT Return box 7, whatever VAT Rate they are.


This site is very useful:

Have a look here for some more info:

HMRC also have a guide on how to complete a VAT Return box-by-box:






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Replying to Ruddles:
By Steve-EBL
14th Dec 2012 16:15

That happy accountant site was just what the Doctor ordered, thank you. 

I think your 2nd point is incorrect, i.e.receiving an invoice from a non VAT registered business would immediately render it outside of scope no matter what it was(??), and it should therefore be ignored for VAT returns.


Thanks a lot for solving my dilema. :)

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By shaun king
14th Dec 2012 15:48

The age old problem of what to put in box 6 and box 7. Ask HMRC and you will gert varying answers but I would suggest that you include all purchase costs ex VAT regardless of whether Exempt or from non VAT registered persons. Officers are never that concerned as to what goes in there as it is only a minor statistical box to make that Input tax does not exceed 20% of the box 7 figure

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Chris M
By mr. mischief
14th Dec 2012 15:56


HMRC don't seem to give a monkeys about that box, and I have had various versions from HMRC staff about what to put in it.  Hence in my view it is a no-brainer as an accountant to put the lot in.

This facilitates sense-checking, for example if a big insurance bill went through this quarter but the input VAT / purchases % ratio stays the same, have you missed claiming VAT on something else?

This ratio checking, incidentally, has enabled me to instantly spot errors made in previous quarters by clients' previous accountants.  Which in turn enables me to quickly build trust that they've made the right decision to switch.  It is OK to delegate the VAT return to relatively junior staff but in my book NOT OK to submit it without proper sense checking by senior staff.

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Replying to spilly:
By David_Br
12th Aug 2014 18:19

Is that not the other way round mr mischief?

would your example not indicate over claiming VAT, as insurance is exempt and this would surely push the ratio down?

Please forgive me i always seem to join the party late.

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By jon_griffey
14th Dec 2012 16:57

Outside the scope

My understanding of HMRC current guidance is to omit supplies from unregistered traders and anything outside the scope from box 7.  Mind you they want you to report outside the scope sales (e.g. exported services) in box 6.  It is all a bit nonsensical.

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By emilys_lake
14th Dec 2012 17:00

non VAT reg?

That's ok Steve :) Glad you found it useful!

Thanks for pointing that out re: the 2nd point - I am not 100% sure myself and the rules seem to be a bit hazy on this and googling seems to bring up a variety of answers... so I've referred this question to our firm's head of VAT for him to ponder over the weekend ;) 


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By emilys_lake
17th Dec 2012 10:21

Purchases from Non-VAT Reg'd suppliers - treatment on VAT Return

As promised, here is the answer that our firm's VAT specialist gave on this subject:

" They should be included on the return as they are business related purchases.  In terms of how to classify them, the importance of exempt, zero or outside the scope is only important for the supplier.  From the purchaser’s perspective they are usually classified as T0.  Simply, no VAT incurred. "

Hope this clarifies things for people :)




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