How the VAT Return calculated

If you're VAT registered, you need to send a VAT Return to ROS every two months. Our system calculates VAT based on your scheme and transaction rates. For more information on how each value calculates, refer to your VAT scheme section below.

For more information about how to create a VAT Return, refer to our help article.

Invoice basis

If you calculate VAT on an invoice basis, the VAT Return calculates from the VAT element of you're:

Invoices and credit notes
Other payments and receipts made through the Banking option
Journals posted to the relevant VAT nominal codes

How the VAT Return calculates

T1	The total VAT on sales – This includes the VAT element of: Sales invoices Sales credit notes – deducted from the value in this box Bank, cash and visa receipts Journal debits or credits posted to the VAT on sales nominal code For standard or lower rated services from an EU or non-EU supplier, include reverse charge VAT in this box.
T2	The total VAT on purchases – This includes the VAT element of: Purchase invoices Purchase credit notes – deducted from the value in this box Bank, cash and visa payments Journal debits and credits posted to the VAT on purchases nominal code
T3	If T1 exceeds T2, the difference, representing VAT payable to Revenue, appears here for payment.
T4	If T2 exceeds T1, the difference, signifying VAT repayable, appears here for reclamation from Revenue.
E1	The total value of the sale of goods to VAT registered EU customers, excluding VAT. The Net value of destination VAT sales for OSS goods.
E2	The total value of purchases of goods from VAT-registered EU suppliers, excluding VAT.
ES1	The total value of the sale of services to VAT registered EU customers, excluding VAT.
ES2	The total value of purchases of services from VAT-registered EU suppliers, excluding VAT.
PA1	The value of goods imported under postponed accounting.

Cash basis

If you calculate VAT on a cash basis, the VAT Return calculates from the VAT element of you're:

Customer receipts, refunds and any payments on account
Supplier invoices and credit notes
Other payments and receipts made through the Banking option
Journals posted to the relevant VAT nominal codes

CAUTION: When you buy or sell goods and services to a VAT-registered customer or supplier within or outside the EU, calculate VAT upon issue of the invoice not upon payment.

How the VAT Return calculates

T1	The total VAT on sales – This includes the VAT element of: Customer receipts Customer payments on account Customer refunds – deducted from the value in this box Bank, cash and visa receipts Journal debits or credits posted to the VAT on sales nominal code Reverse charge VAT for standard or lower-rated services from EU or non-EU suppliers appear in this box.
T2	The total VAT on purchases – This includes the VAT element of: Purchase invoices Purchase credit notes – deduct from the value in this box Bank, cash and visa payments, recorded through Other Payments Journal debits and credits posted to the VAT on purchases nominal code
T3	The VAT payable total reflects any excess if T1 exceeds T2, indicating the difference owed to Revenue.
T4	The VAT repayable total reflects any excess if T2 exceeds T1, enabling reclamation of the difference from Revenue.
E1	The total value of the sale of goods to VAT-registered EU customers, excluding VAT.
E2	The total value of purchases of goods from VAT-registered EU suppliers, excluding VAT.
ES1	The total value of the sale of services to VAT-registered EU customers, excluding VAT.
ES2	The total value of purchases of services from VAT-registered EU suppliers, excluding VAT.

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