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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: business records checks: at the visit: VAT registered business: a VAT account

A VAT account is a summary of VAT payable to HMRC (output tax) and VAT that can be reclaimed by the business (input tax). The VAT account must cover the period covered by the VAT return. It is effectively the link between the business records and the VAT return. An example of a VAT account is provided below.

Period from 1 July 2009 to 30 September 2009

Input Tax £ Output Tax £
VAT you have been charged on your purchases   VAT you have charged on your sales  
January £2,215.23 January £2,780.23
February £1,626.47 February £2,305.81
March £2,792.01 March £3,302.45
Sub Total £6,633.71 Sub Total £8,388.49
Other Adjustments (specify) - Other Adjustments (specify) -
Total Tax Deductible £6,633.71 Total Tax Payable £8,388.49

The summary may be kept as a separate record, or may form part of another. For example, if a person has a cash book or day book that separately shows the VAT, the VAT figures may be totalled on a monthly or quarterly basis and become the VAT account.