Box 1: VAT due on sales and other outputs

What goes in box 1

The output tax on every supply you made in the period, worked out by the tax point rules for each sale.

• VAT on all goods and services you supplied in the period
• Less any VAT on credit notes you issued
• Where you took something in part exchange, VAT on the full value of the goods
• If you bought services under the domestic reverse charge, the VAT on those purchases (you then reclaim it in box 4, subject to the normal rules)

What to leave out

• Amounts HMRC has notified to you as assessments
• Zero-rated exports or supplies to EU member states, unless the conditions for zero-rating them are met

How box 1 links to the other boxes

Box 1 and box 2 added together make box 3. If everything you sell is standard-rated, box 1 should equal the standard rate applied to the sales total in box 6. HMRC suggests that comparison as a check before you submit. The current standard rate is on our UK tax rates page.

Common mistakes

• Forgetting to deduct the VAT on credit notes you issued in the period.
• Valuing a part-exchange sale at the cash received instead of the full value of the goods.
• Leaving out reverse charge VAT on purchases. As the customer you account for it in box 1 and reclaim it in box 4.

Sources

• HMRC, How to fill in and submit your VAT Return (VAT Notice 700/12), section 3.2
• HMRC, How to fill in and submit your VAT Return (VAT Notice 700/12), section 7.1
• HMRC, Domestic reverse charge procedure (VAT Notice 735), section 8.5