Karen Bullen provides your refresher guide to these rules
Refunds
Refunds of VAT can take two forms; first HMRC will make a refund of VAT when the output tax is less than the input tax on a VAT return. In such a case there will be a negative figure calculated on the VAT return and this figure will be refunded to the trader usually when the VAT return is submitted (VATA 1994 s 80).
The trader may also get a refund of VAT that he has overpaid at an earlier point in time – an overpayment may have occurred if he incorrectly classified something as standard-rated when it should have been zero-rated etc. Thus the VAT he paid over and above the amount due will be refunded to him.
Refund shown on a VAT return
Once a VAT return showing that VAT is repayable to the taxpayer is...
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Karen Bullen provides your refresher guide to these rules
Refunds
Refunds of VAT can take two forms; first HMRC will make a refund of VAT when the output tax is less than the input tax on a VAT return. In such a case there will be a negative figure calculated on the VAT return and this figure will be refunded to the trader usually when the VAT return is submitted (VATA 1994 s 80).
The trader may also get a refund of VAT that he has overpaid at an earlier point in time – an overpayment may have occurred if he incorrectly classified something as standard-rated when it should have been zero-rated etc. Thus the VAT he paid over and above the amount due will be refunded to him.
Refund shown on a VAT return
Once a VAT return showing that VAT is repayable to the taxpayer is...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
