PART VACCOUNTING, PAYMENT AND RECORDS

The VAT accountI132

1

Every taxable person shall keep and maintain, in accordance with this regulation, an account to be known as the VAT account.

2

The VAT account shall be divided into separate parts relating to the prescribed accounting periods of the taxable person and each such part shall be further divided into 2 portions to be known as “the VAT payable portion” and “the VAT allowable portion”.

3

The VAT payable portion for each prescribed accounting period shall comprise—

a

a total of the output tax due from the taxable person for that period,

b

a total of the output tax due on acquisitions from other member States by the taxable person for that period,

F1ba

a total of the tax which the taxable person is required to account for and pay on behalf of the supplier,

c

every correction or adjustment to the VAT payable portion which is required or allowed by regulation 34, 35 F2, 38 or 38A, and

d

every adjustment to the amount of VAT payable by the taxable person for that period which is required, or allowed, by or under any Regulations made under the Act.

4

The VAT allowable portion for each prescribed period shall comprise—

a

a total of the input tax allowable to the taxable person for that period by virtue of section 26 of the Act,

b

a total of the input tax allowable in respect of acquisitions from other member States by the taxable person for that period by virtue of section 26 of the Act,

c

every correction or adjustment to the VAT allowable portion which is required or allowed by regulation 34, 35 or 38, and

d

every adjustment to the amount of input tax allowable to the taxable person for that period which is required, or allowed, by or under any Regulations made under the Act.