Relief for tax chargeable, paid or payable

V3.401 Introduction

A taxable person1 may have an obligation—

  1.  

    (a)     to pay VAT to his suppliers; or

  2.  

    (b)     to account for VAT direct to HMRC—

  3.  
    1.  

      (i)     on imports2;

    2.  

      (ii)     on acquisitions3;

    3.  

      (iii)     under the reverse charge procedure4; or

    4.  

      (iv)     on deemed supplies5.

If this tax is input tax or is treated as input tax, all or part of it may be recovered from HMRC by way of a deduction from any output tax due to them (“input tax credit”)6. If not, it may be recoverable from HMRC or the appropriate authority in another EU member state by way of a claim for refund or repayment. The ECJ has held7 that, despite the provisions of Directive 2006/112/EC art 1838, “by precluding the refund of a VAT excess where the consideration, including VAT, due for the transafction on which the deductible VAT arises has not yet been paid [and instead carrying the excess forward to the next, or later, tax periods] the Republic of Hungary has exceeded the limits of the freedom available to the Member States under Article 183.” However, it then went on to say “it must be borne in mind that the carrying forward of a VAT excess over several tax periods following

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