Value Added Tax Act 1994

[F1 16 (1) Part 19 (bad debt relief (the new scheme)) has effect subject to the following modifications. U.K.

(2) Regulation 165 (interpretation of Part 19) has effect as if—

(a) in the definition of “claim”, after “regulations 166” there were inserted “ or 166A ”;

(b) in the definition of “return”, after “regulation 25” there were inserted “but “relevant non-UK return” has the meaning given by paragraph 22(3) of Schedule 9ZD to the Act and “relevant special scheme return” has the meaning given by paragraph 16(3) of Schedule 9ZE to the Act”;

(c) at the appropriate place there were inserted—

““tax period” has the meaning given by paragraph 38 of Schedule 9ZD or paragraph 43 of Schedule 9ZE (as the case may be) to the Act”.

(3) Regulation 166 (the making of a claim to the Commissioners) has effect as if, at the beginning of paragraph (1) there were inserted “Subject to regulation 166A, and”.

(4) That Part has effect as if after regulation 166 there were inserted—

“The making of a claim to the Commissioners: special accounting schemes U.K.

166AA (1) This regulation applies where the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return.

(2) Where this regulation applies, the claimant must make the claim by—

(a) amending, in accordance with Article 61 of the Implementing Regulation, that relevant non-UK return or relevant special scheme return, or

(b) (where the period during which a person is entitled to make such an amendment has expired) notifying the Commissioners of the claim in writing in English.”

(5) Regulation 168 (records required to be kept by the claimant) has effect as if after paragraph (3) there were inserted—

“(4) Where regulation 166AA applies, “prescribed accounting period” in this regulation is to be read as “tax period”.”

(6) Regulation 171 (repayment of a refund) has effect as if at—

(a) at the beginning of paragraph (1) there were inserted “Subject to regulation 171A,”;

(b) at the beginning of paragraph (2) there were inserted “Subject to regulation 171B,”;

(c) at the beginning of paragraph (3) there were inserted “subject to regulation 171B and,”.

(7) Those Regulations have effect as if after regulation 171 there were inserted—

“Calculation of repayment where reduction in consideration: special accounting schemes U.K.

171A In a case falling within sub-paragraph (b)(iii) of regulation 171(1) where the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, the amount to be repaid is such an amount as is equal to the amount by which the VAT chargeable on the relevant supply is reduced.

Timing and method of repayments: special accounting schemes U.K.

171B (1) Where—

(a) the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, and

(b) a repayment is required by regulation 171(1),

that repayment must be made no later than twenty days after the end of the tax period in which the payment for the relevant supply is received or the reduction in consideration is accounted for in the claimant's business accounts.

(2) Where—

(a) the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, and

(b) a repayment is required by regulation 171(3),

that repayment must be made no later than twenty days after the end of the tax period in which the failure to comply first occurred.

(3) In either case the repayment must be made by—

(a) amending the relevant non-UK return or the relevant special scheme return for the tax period in which the VAT on the relevant supply was brought into account, or

(b) (where the relevant period has expired) sending the sum due to the Commissioners.

(4) In sub-paragraph (3)(b), the “relevant period” is the period of 3 years beginning with the day on which the relevant non-UK return or the relevant special scheme return for the tax period in which the VAT on the relevant supply was brought into account was required to be submitted.”]

Textual Amendments

F1 Schs. 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