Part I The charge to tax
Payment of VAT by taxable persons
26ABF1Adjustment of output tax in respect of supplies under section 55A
1
This section applies if—
a
a person is, as a result of section 26A, taken not to have been entitled to any credit for input tax in respect of any supply, and
b
the supply is one in respect of which the person is required under section 55A(6) to account for and pay VAT.
2
The person is entitled to make an adjustment to the amount of VAT which he is so required to account for and pay.
3
The amount of the adjustment is to be equal to the amount of the credit for the input tax to which the person is taken not to be entitled.
4
Regulations may make such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section.
5
Regulations under this section may in particular—
a
make provision for the manner in which, and the period for which, the adjustment is to be given effect,
b
require the adjustment to be evidenced and quantified by reference to such records and other documents as may be specified by or under the regulations,
c
require the person entitled to the adjustment to keep, for such period and in such form and manner as may be so specified, those records and documents,
d
make provision for readjustments if any credit for input tax is restored under section 26A.
6
Regulations under this section may make different provision for different circumstances.