First Previous - Page 1 of 1 - Next Last

M4 export/import vat return box 6 & 7

  • Student
  • 5 posts
  • # 120160

Hi, Im self studying and having just completed a task and checking the answers in the book, I'm confused!  When completing the vat return nett sales box 6, I have added the exports figure taken from under the heading 'transactions outside of the UK' but the answer in the book has added the imports figure! I thought exports were sales and imports were purchases, am I missing something obvious?   I hope someone can help as I've spent over an hour trying to make sense of this!!

 

Many thanks, Andrea

  • Member PM.Dip
  • Practice Licence
  • 16 posts
  • # 120161

Are you able to post the question? 

  • Student
  • 5 posts
  • # 120162

Thank you for getting back to me, here's the question;

Assignment 3, Task 2

'Given figures below prepare a VAT return.

Where applicable, all figures are exclusive of VAT, VAT numbers have been exchanged and proof of removal has been obtained'

transactions in the UK; Credit sales £122460.00, Cash Sales £36149.20, Credit purchases £41954.40, Cash purchases £6282.00, Credit notes to customers £278.00, Credit notes from suppliers £517.30, Expenses standard rate £29335.00, Expenses zero/exempt £18400.00.

transactions outside of the UK; Imports £8500 and Exports £11284

The VAT return answer reads;

Box 1     31,666.24

Box 2     0

Box 3     31,666.24

Box 4     15,410.82

Box 5     16,255.42

Box 6     166,831

Box 7     106,738

I was correct with my answers for boxes 1 to 5, but 6 & 7 confuse me.

Many thanks, Andrea

  • Member PM.Dip
  • Practice Licence
  • 16 posts
  • # 120165

Hi Andrea,

I agree the imports/exports appear to be the wrong way round.  As frustrating as it is, I would change the question so it is correct in your book so that next time you come upon it in revision perhaps it doesn't weigh you down again.

And yes, exports are sales, imports are purchases see: https://www.gov.uk/guidance/how-to-fill-in-and-submit-your-vat-return-vat-notice-70012#section3

Best of luck with the exam!

Mark

  • Student
  • 5 posts
  • # 120167

Thank you Mark, I refuse to continue with a subject until I understand the answers, I can now carry on as I know my thought process is correct.

 

Once again many thanks for all your help, Andrea

First Previous - Page 1 of 1 - Next Last
bottomBanner
loading