VAT payments on account

12C

1

This paragraph applies in the case of a repayment of the amount by which—

a

the total amount of payments on account made in respect of a prescribed accounting period, exceeds

b

the amount of VAT payable in respect of that accounting period.

2

The repayment interest start date is the date on which the VAT return for the prescribed accounting period is due.

3

In this paragraph—

• “payment on account” means a payment on account required under section 28 of VATA 1994;

• “prescribed accounting period” has the same meaning as in VATA 1994;

• “VAT return” means a return required to be made by regulations under VATA 1994.

PART 2AVAT: special provision as to period for which amount carries interest

12D

In this Part of this Schedule—

• “prescribed accounting period” has the same meaning as in VATA 1994;

• “relevant VAT return” means the VAT return for the prescribed accounting period to which the VAT credit relates;

• “VAT credit” has the same meaning as in VATA 1994;

• “VAT return” means a return required to be made by regulations under VATA 1994.

12E

1

An amount of VAT credit does not carry interest for any period during which—

a

a VAT return required to be made on or before the date on which the relevant VAT return is made has not been made, or

b

there is a failure to comply with a requirement imposed under paragraph 4(1) or (1A) of Schedule 11 to VATA 1994 (production of evidence and giving of security).

2

The period referred to in sub-paragraph (1)(b)—

a

begins on the date when written notice requiring production of evidence or the giving of security is given by HMRC, and

b

ends on the date when HMRC receive the required evidence or the required security.