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PART XXU.K.REPAYMENTS TO COMMUNITY TRADERS

[F1173D.(1) This regulation applies where—U.K.

(a)a claim (“the original claim”) for repayment of VAT to the extent of the deductible proportion of that VAT described in regulation 173C has been made; and

(b)the deductible proportion used in making the claim was determined on a provisional basis as described in Article 175(2) of the principal VAT Directive.

(2) Where the amount of VAT claimed in the original claim is less than the VAT that would have been repayable if the deductible proportion had been determined by reference to the final proportion described in Article 175(3) of the principal VAT Directive, the VAT representing the difference between the two amounts may be claimed by means of a repayment application submitted during the adjustment year as if that VAT had been incurred during the repayment period covered by that repayment application.

(3) Where the amount of VAT claimed in the original claim is more than the VAT that would have been repayable if the deductible proportion had been determined by reference to the final proportion described in Article 175(3) of the principal VAT Directive, the VAT representing the difference between the two amounts must be repaid to the Commissioners—

(a)by way of adjustment of a repayment claim made by means of a repayment application submitted in the adjustment year, or

(b)if no repayment claim is made as described in sub-paragraph (a) above, the payment back to the Commissioners must be made pursuant to a declaration submitted using the electronic portal set up by the claimant’s member State for the purpose of facilitating repayments of VAT in accordance with the refund Directive before the expiry of the adjustment year.

(4) In this regulation “adjustment year” means the repayment year beginning immediately after the repayment year in which the repayment period of the original claim occurred or would have occurred if the original claim had been made in respect of the repayment period when the VAT was incurred.]