How to file a VAT return under MTD

If you’re VAT-registered you already file under Making Tax Digital. Here’s how VAT returns work and what the nine boxes mean.

Updated July 2026 · A general guide, not personal tax advice.

Do you need to register for VAT?

You must register once your VAT-taxable turnover goes over the registration threshold (rolling 12 months), and you can register voluntarily below it. Once registered, you charge VAT on your sales and can reclaim VAT on eligible purchases. Check your turnover with the VAT calculator.

MTD for VAT

VAT-registered businesses must keep digital records and file returns through MTD-compatible software — you can’t type the figures straight into HMRC’s website. Most businesses file quarterly.

The nine boxes

• Box 1 — VAT due on sales
• Box 2 — VAT due on acquisitions (post-Brexit, usually 0 for GB)
• Box 3 — total VAT due (Box 1 + Box 2)
• Box 4 — VAT reclaimed on purchases
• Box 5 — net VAT to pay or reclaim (Box 3 − Box 4)
• Boxes 6–9 — total sales and purchases (excluding VAT) and related figures

How FTrak files VAT

FTrak tracks your rolling turnover against the threshold, works out your nine-box figures from your records, and submits the return to HMRC under MTD — with the digital link kept intact. See features.