HMRC approach to processing repayment VAT returns

Produced by Tolley
HMRC approach to processing repayment VAT returns

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • HMRC approach to processing repayment VAT returns
  • HMRC process
  • Repayment supplement
  • Qualifying conditions
  • Paying repayment supplement
  • Appealing against HMRC’s decision

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note provides an overview of the procedure that HMRC should follow when it receives a repayment VAT return.

See ‘Back to basics ― VAT refunds, repayment supplement and interest’ by Karen Bullen in Tax Journal, Issue 1066, 21 (25 February 2011).

Update: the draft Finance Bill 2018–19 legislation and explanatory notes. In Clause 32 and Schedule 14 of the draft legislation, changes have been introduced which will bring VAT into the scope of the provisions for repayment interest. The changes generally ensure that repayment interest works in the same way for VAT as it currently does for income tax self assessment with the exception of two areas around reasonable enquiry and missing returns. It is important to note that the draft legislation contains provisions under which no repayment interest is paid on:

  1. balancing payments for VAT payments on account when the payments of account exceed the total amount due on the VAT return

  2. for any period where HMRC has a reasonable inquiry

  3. any period where HMRC is correcting errors and omissions, or

  4. for any period when there are other VAT returns missing at the time of receipt of the relevant return

  5. for any period where notice is given to produce evidence

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