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Value Added Tax Act 1994

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F1[F1PART 5U.K.Collection of F2...UK VAT

Textual Amendments

F1Schs. 9ZD-9ZF inserted (10.6.2021 for specified purposes, 1.7.2021 for specified purposes, 1.3.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 6; S.I. 2021/770, regs. 3, 4 (with regs. 5-7); S.I. 2024/130, regs. 3, 4

Assessments: general modifications of section 73U.K.

22(1)For the purposes of this Schedule, section 73 (failure to make returns etc) is to be read as if—U.K.

(a)the reference in subsection (1) of that section to returns required under this Act included relevant non-UK returns, F3...

(b)references in that section to a prescribed accounting period included a tax period [F4, and

(c)references in that section to a VAT credit included a repayment to persons who are not taxable persons of an amount of VAT paid under and in accordance with this Schedule.]

(2)See also the modifications in paragraph 23.

(3)In this Schedule “relevant non-UK return” means a non-UK return (see paragraph 38(1)) that is required to be made (wholly or partly) in respect of scheme supplies that are treated as made in the United Kingdom.

Textual Amendments

Assessments in connection with increase in consideration: modificationsU.K.

23(1)Sub-paragraphs (2) [F5and (3)] make modifications of [F6section 73] which—U.K.

(a)have effect for the purposes of this Schedule, and

(b)are in addition to any other modifications of those sections made by this Schedule.

(2)Section 73 has effect as if, after subsection (3), there were inserted—

“(3A)Where a person has failed to make an amendment or notification that the person is required to make under paragraph 33 of Schedule 9ZD in respect of an increase in the consideration for a UK supply (as defined in paragraph 33(7)), the Commissioners may assess the amount of VAT due from the person as a result of the increase to the best of their judgement and notify it to the person.

(3B)An assessment under subsection (3A)—

(a)is of VAT due for the tax period mentioned in paragraph 33(1)(a) of Schedule 9ZD;

(b)must be made within the time limits provided for in section 77, and must not be made after the end of the period of—

(i)2 years after the end of the tax period referred to in paragraph 33(1)(a) of Schedule 9ZD, or if later,

(ii)one year after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.

(3C)Subject to section 77, where further evidence such as is mentioned in subsection (3B)(b)(ii) comes to the Commissioners' knowledge after they have made an assessment under subsection (3A), another assessment may be made under that subsection, in addition to any earlier assessment.”

(3)The reference in section 73(9) to subsection (1) of that section is taken to include a reference to section 73(3A) (treated as inserted by sub-paragraph (2)).

F7(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Assessments: consequential modificationsU.K.

24U.K.References to prescribed accounting periods in [F8section 77 (assessments: time limits, etc)] are to be read in accordance with the modifications made by paragraphs 22 and 23—

F9(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Deemed amendments of F10... returnsU.K.

Textual Amendments

25(1)Where a person who has made [F11an OSS scheme return or] a relevant non-UK return makes a claim under paragraph 31(7)(b) (overpayments) in relation to an error in the return, the F12... return is taken for the purposes of this Act to have been amended by the information in the claim.U.K.

(2)Where a person who has made [F13an OSS scheme return or] a relevant non-UK return gives the Commissioners a notice relating to the return under [F14paragraph 33(2)] (increase or decrease in consideration), the F15... return is taken for the purposes of this Act to have been amended by that information.

(3)Where (in a case not falling within sub-paragraph (1) or (2)) a person who has made [F16an OSS scheme return or] a relevant non-UK return notifies the Commissioners F17... of a change that needs to be made to the return to correct an error, or rectify an omission, in it, the F18... return is taken for the purposes of this Act to have been amended by that information.

Textual Amendments

Interest on VAT: “reckonable date”U.K.

F1926U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Default surcharge: notice of special surcharge periodU.K.

F1927U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Further default after service of noticeU.K.

F1928U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Default surcharge: exceptions for reasonable excuse etcU.K.

F1929U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Interest in certain cases of official errorU.K.

F1930U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

OverpaymentsU.K.

31(1)A person may make a claim if the person—U.K.

(a)has made a non-UK return for a tax period relating wholly or partly to scheme supplies treated as made in the United Kingdom,

(b)has accounted to the tax authorities for the administering member State for VAT in respect of those supplies, and

(c)in doing so has brought into account as UK VAT due to those authorities an amount (“the overpaid amount”) that was not UK VAT due to them.

(2)A person may make a claim if the person has, as a participant in a non-UK scheme, paid (to the tax authorities for the administering member State or to the Commissioners) an amount by way of UK VAT that was not UK VAT due (“the overpaid amount”), otherwise than in the circumstances mentioned in sub-paragraph (1)(c).

(3)A person who is or has been a participant in a non-UK scheme may make a claim if the Commissioners—

(a)have assessed the person to VAT for a tax period, and

(b)in doing so, have brought into account as VAT an amount (“the amount not due”) that was not VAT due.

(4)Where a person makes a claim under sub-paragraph (1) or (2), the Commissioners must repay the overpaid amount to the person.

(5)Where a person makes a claim under sub-paragraph (3), the Commissioners must credit the person with the amount not due.

(6)Where—

(a)as a result of a claim under sub-paragraph (3) an amount is to be credited to a person, and

(b)after setting any sums against that amount under or by virtue of this Act, some or all of the amount remains to the person's credit,

the Commissioners must pay (or repay) to the person so much of the amount as remains to the person's credit.

(7)The reference in sub-paragraph (1) to a claim is to a claim made—

(a)by correcting, in accordance with Article 61 of the Implementing Regulation, the error in the non-UK return mentioned in sub-paragraph (1)(a), or

(b)(after the expiry of the period during which the non-UK return may be amended under Article 61) to the Commissioners.

(8)Sub-paragraphs (1) and (2) do not require any amount to be repaid except to the extent that is required by Article 63 of the Implementing Regulation.

Overpayments: supplementaryU.K.

32(1)In section 80 (credit for, or repayment of, overstated or overpaid VAT), subsections (3) to (3C) (unjust enrichment) and (4A) F20... and (6) (recovery by assessment of amounts wrongly credited) have effect as if—U.K.

(a)a claim—

(i)under paragraph 31(1) were a claim under section 80(1),

(ii)under paragraph 31(2) were a claim under section 80(1B), and

(iii)under paragraph 31(3) were a claim under section 80(1A);

(b)references in that section to a prescribed accounting period included a tax period.

(2)In section 80(3) to (3C), (4A) F21... and (6), as modified by sub-paragraph (1), references to the crediting of amounts are to be read as including the payment of amounts.

(3)The Commissioners are not liable to repay the overpaid amount on a claim made—

(a)under paragraph 31(2), or

(b)as mentioned in paragraph 31(7)(b),

if the claim is made more than 4 years after the relevant date.

(4)On a claim made under paragraph 31(3), the Commissioners are not liable to credit the amount not due if the claim is made more than 4 years after the relevant date.

(5)The “relevant date” is—

(a)in the case of a claim under paragraph 31(1), the end of the tax period mentioned in paragraph 31(1)(a), except in the case of a claim resulting from an incorrect disclosure;

(b)in the case of a claim under paragraph 31(1) resulting from an incorrect disclosure, the end of the tax period in which the disclosure was made;

(c)in the case of a claim under paragraph 31(2), the date on which the payment was made;

(d)in the case of a claim under paragraph 31(3), the end of the quarter in which the assessment was made.

(6)A person makes an “incorrect disclosure” where—

(a)the person discloses to the tax authorities in question (whether the Commissioners or the tax authorities for the administering member State) that the person has not brought into account for a tax period an amount of UK VAT due for the period (“the disclosed amount”),

(b)the disclosure is made in a later tax period, and

(c)some or all of the disclosed amount is not in fact VAT due.

Textual Amendments

Increase or decrease in consideration for a supply [F22: cases outside Article 61 of the Implementing Regulation] U.K.

Textual Amendments

33(1)This paragraph applies where—U.K.

(a)a person makes [F23an OSS scheme return or] a non-UK return for a tax period (“the affected tax period”) relating (wholly or partly) to a UK supply, and

(b)after the [F24end of the period during which the person is entitled under Article 61 of the Implementing Regulation to amend their return] the amount of the consideration for the UK supply increases or decreases.

[F25(2)The person must, in the tax period in which the increase or decrease is accounted for in the person’s business accounts, notify the Commissioners of the adjustment needed to the figures in the OSS scheme return or non-UK return (as the case may be) because of the increase or decrease.]

(3)[F26Where the change to which a notice under sub-paragraph (2) relates is an increase in the consideration for a supply, the person must pay to the Commissioners the difference between—]

(a)the amount of VAT that was chargeable on the supply before the increase in consideration, and

(b)the amount of VAT that is chargeable in respect of the whole of the increased consideration for the supply.

(4)Where the change to which an amendment or notice under sub-paragraph (2) relates is a decrease in the consideration for a [F27supply], the amendment or notice has effect as a claim; and where a claim is made the Commissioners must repay any [F28UK] VAT paid by the person that would not have been [F28UK] VAT due from the person had the consideration for the supply always been the decreased amount.

(5)The Commissioners may by regulations specify—

(a)the latest time by which, and the form and manner in which, a claim or other notice under [F29sub-paragraph (2)] must be given;

(b)the latest time by which, and the form in which, a payment under sub-paragraph (3) must be made F30....

F31(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)In this paragraph “UK supply” means a scheme supply that is treated as made in the United Kingdom.

Textual Amendments

Bad debtsU.K.

34U.K.Where a participant in a non-UK scheme—

(a)has submitted a non-UK return to the tax authorities for the administering member State, and

(b)amends the return to take account of the writing-off as a bad debt of the whole or part of the consideration for a scheme supply that is treated as made in the United Kingdom,

the amending of the return may be treated as the making of a claim to the Commissioners for the purposes of section 36(2) (bad debts: claim for refund of VAT).

Penalties for errors: disclosureU.K.

35U.K.Where a person corrects a non-UK return in a way that constitutes telling the tax authorities for the administering member State about—

(a)an inaccuracy in the return,

(b)a supply of false information, or

(c)a withholding of information,

the person is regarded as telling HMRC about that for the purposes of paragraph 9 of Schedule 24 to the Finance Act 2007.

Set-offsU.K.

36U.K.Where a participant in a non-UK scheme is liable to pay UK VAT to the tax authorities for the administering member State in accordance with the scheme, the UK VAT is regarded for the purposes of section 130(6) of the Finance Act 2008 (set-off) as payable to the Commissioners.]

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