F1PART VAREIMBURSEMENT ARRANGEMENTS
Interpretation of Part VAF243A
In this Part—
“claim” means a claim made (irrespective of when it was made) under section 80 of the Act for repayment of an amount paid to the Commissioners by way of VAT which was not VAT due to them; and “claimed” and “claimant” shall be construed accordingly;
“reimbursement arrangements” means any arrangements (whether made before, on or after 30th January 1998) for the purposes of a claim which—
- a
are made by a claimant for the purpose of securing that he is not unjustly enriched by the repayment of any amount in pursuance of the claim; and
- b
provide for the reimbursement of persons (consumers) who have, for practical purposes, borne the whole or any part of the cost of the original payment of that amount to the Commissioners;
- a
“relevant amount” means that part (which may be the whole) of the amount of a claim which the claimant has reimbursed or intends to reimburse to consumers.
Reimbursement arrangements—generalF243B
Without prejudice to F3regulation 43H below, for the purposes of section 80(3) of the Act (defence by the Commissioners that repayment by them of an amount claimed would unjustly enrich the claimant) reimbursement arrangements made by a claimant shall be disregarded except where they—
a
include the provisions described in F4regulation 43C below; and
b
are supported by the undertakings described in F5regulation 43G below.
Reimbursement arrangements—provisions to be includedF243C
The provisions referred to in F6regulation 43B(a) above are that—
a
reimbursement for which the arrangements provide will be completed by no later than 90 days after the repayment to which it relates;
b
no deduction will be made from the relevant amount by way of fee or charge (howsoever expressed or effected);
c
reimbursement will be made only in cash or by cheque;
d
any part of the relevant amount that is not reimbursed by the time mentioned in paragraph (a) above will be repaid by the claimant to the Commissioners;
e
any interest paid by the Commissioners on any relevant amount repaid by them will also be treated by the claimant in the same way as the relevant amount falls to be treated under paragraphs (a) and (b) above; and
Repayments to the CommissionersF243D
RecordsF243E
The claimant shall keep records of the following matters—
a
the names and addresses of those consumers whom he has reimbursed or whom he intends to reimburse;
b
the total amount reimbursed to each such consumer;
c
the amount of interest included in each total amount reimbursed to each consumer;
d
the date that each reimbursement is made.
Production of recordsF243F
1
Where a claimant is given notice in accordance with paragraph (2) below, he shall, in accordance with such notice produce to the Commissioners, or to an officer of theirs, the records that he is required to keep pursuant to F11regulation 43E above.
2
A notice given for the purposes of paragraph (1) above shall—
a
be in writing;
b
state the place and time at which, and the date on which the records are to be produced; and
c
be signed and dated by the Commissioners, or by an officer of theirs,
and may be given before or after, or both before and after the Commissioners have paid the relevant amount to the claimant.
UndertakingsF243G
1
2
The undertakings shall be in writing, shall be signed and dated by the claimant, and shall be to the effect that—
a
at the date of the undertakings he is able to identify the names and addresses of those consumers whom he has reimbursed or whom he intends to reimburse;
b
he will apply the whole of the relevant amount repaid to him, without any deduction by way of fee or charge or otherwise, to the reimbursement in cash or by cheque, of such consumers by no later than 90 days after his receipt of that amount (except insofar as he has already so reimbursed them);
c
he will apply any interest paid to him on the relevant amount repaid to him wholly to the reimbursement of such consumers by no later than 90 days after his receipt of that interest;
d
he will repay to the Commissioners without demand the whole or such part of the relevant amount repaid to him or of any interest paid to him as he fails to apply in accordance with the undertakings mentioned in sub-paragraphs (b) and (c) above;
e
he will keep the records described in F14regulation 43E above; and
f
he will comply with any notice given to him in accordance with F15regulation 43F above concerning the production of such records.
Reimbursement arrangements made before 11th February 1998F243H
Reimbursement arrangements made by a claimant before 11th February 1998 shall not be disregarded for the purposes of section 80(3) of the Act if, not later than 11th March 1998—
a
he includes in those arrangements (if they are not already included) the provisions described in F16regulation 43C above; and
b
gives the undertakings described in F17regulation 43G above.
Pt. 5A inserted (11.2.1998) by The Value Added Tax (Amendment) Regulations 1998 (S.I. 1998/59), regs. 1, 2