If your company is registered for VAT, then you will periodically have to submit VAT returns.

To find out if you have a return due, you can pop in to the Taxes tab within Ember. Here you will be able to see a VAT Return tile letting you know when your next return is due.

Note: If you're VAT registered, and you don't see VAT in the Taxes tab please hook up your HMRC account using your government gateway login details where the VAT account is linked. If it is not showing after this, please follow the steps here.

Once you've clicked inside the VAT return tile, you will be presented with three tabs. Sales, Purchases and Totals.

In the Sales tab, you will find all of the invoices you have raised as a company that are subject to VAT. If you don't have any sales in this period, then this section will be empty.

In the Purchases tab, you will find all of the purchases you have made which are subject to VAT in the given period.

Finally, in the totals tab, you will find the VAT return as it will be presented to HMRC. The main box to consider here is the Net VAT to be paid or reclaimed. This shows you how much you need to pay over to HMRC, or can reclaim from them.

How each VAT box is calculated

VAT due on sales is calculated as follows:

  • any VAT due on sales from your Sales tab

  • any reverse charge VAT due on your purchases

VAT reclaimed on purchases:

  • any VAT due on the purchases from your Purchases tab

  • any reverse charge VAT due on your purchases

Net VAT to be paid or reclaimed

  • the difference between boxes 3 & 4

  • if this box is green, that is a refund from HMRC

  • if this box is pink, that is a payment due to HMRC

Total value of sales

  • the total gross value of sales from the sales tab

  • plus the total gross value of any reverse charge purchases

Total value of purchases

  • the total gross value of any purchases subject to VAT from the purchases tab

  • plus the total gross value of any reverse charge purchases

If you're happy with the return, you can scroll down to the bottom of the totals tab and click submit return.


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