Business · Calculator companion · By K Imports
VAT3 return reconciliation: practical guide
This guide explains how to use the Count.ie vat3 return reconciliation. Reconcile T1 and T2 to VAT payable/refundable, with separate EU and postponed-accounting values. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the VAT3 return reconciliation calculatorWhat to prepare
- Gather supplier quotes, invoices, time records and the actual scope of the job or business decision.
- Separate revenue from VAT, direct costs from overheads, and profit from the timing of cash receipts.
- Use the same accounting period and currency for related inputs.
Understand the inputs
The calculation method
Adjusted T1 = output VAT + signed output adjustments; adjusted T2 = deductible VAT + signed input adjustments. T3 = positive T1 − T2; T4 = positive T2 − T1. E/ES/PA values are independent net-value disclosures.
Worked example
Illustrative inputs and their result.
Example inputs
- T1 VAT on sales including relevant self-accounted VAT (€)
- 2300
- T2 deductible VAT including eligible self-accounted VAT (€)
- 1350
- Signed T1 credit-note/other adjustment (€)
- 0
- Signed T2 credit-note/other adjustment (€)
- 0
- E1 net intra-EU goods supplies (€)
- 0
- E2 net intra-EU goods acquisitions (€)
- 0
- ES1 net intra-EU services supplies (€)
- 0
- ES2 net intra-EU services acquisitions (€)
- 0
- PA1 postponed-accounting customs value excluding VAT (€)
- 0
Calculated example result
- VAT Payable T3
- €950.00
- VAT Refundable T4
- €0.00
How to interpret the result
A profitable estimate can still create a cash shortfall. Read the cost and timing assumptions as well as the headline profit, price or return; the result is a scenario, not a sales forecast.
Keep the scope constant while changing price, volume, supplier cost or time. A lower-sales or higher-cost case helps show whether the decision depends on an optimistic assumption.
Common mistakes to avoid
- Do not confuse markup on cost with margin on selling price.
- Include work that is easy to miss, such as travel, setup, rework and administration, where the model supports it.
- Do not treat tax collected or an unpaid invoice as freely available cash.
Assumptions and sources
No filing or tax classification. Do not add EU transaction values or customs values directly to VAT liability. Include relevant self-accounted VAT in T1 and only eligible deductions in T2. Check reporting periods, invoices, credit notes, deductibility and ROS rounding.
Rules checked . Baseline rules year: 2026. Reviewed scope: VAT3 arithmetic and field meanings, not return filing. This does not verify every selectable year, date or Budget announcement profile.
Sources and further information
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.