Hi there, rakuleti.
I understand how this situation can be confusing. The discrepancy between Box 7 and your detailed report may arise from exclusions, VAT code errors, or miscategorization.
To help you resolve this, here are a few steps you can review:
- Verify the VAT codes applied to your purchase transactions. Box 7 excludes transactions categorized as “Exempt” or “Outside Scope” but includes zero-rated purchases. Confirm that VAT codes are accurate and match HMRC reporting requirements.
- Look for purchase entries that might be excluded due to incorrect categorizations or postings to the wrong accounts. Compare the detailed VAT report line-by-line against your Box 7 summary.
- If you're working with reverse charge transactions, multi-currency purchases, or manual adjustments in your VAT account, these might also impact Box 7. Ensure conversions are accurate and adjustments are fully reconciled.
If you have any additional questions or need further assistance, feel free to reply in the comments.
