Section 80 [Credit for, or repayment of, overstated or overpaid VAT]
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Amendments
Heading substituted by Finance (No. 2) Act 2005 section 3(11) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(1) Where a person—
(a) has accounted to the Commissioners for VAT for a prescribed accounting period (whenever ended), and
(b) in doing so, has brought into account as output tax an amount that was not output tax due,
the Commissioners shall be liable to credit the person with that amount.
Amendments
Subs (1) substituted by Finance (No. 2) Act 2005 section 3(2) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(1A) Where the Commissioners—
(a) have assessed a person to VAT for a prescribed accounting period (whenever ended), and
(b) in doing so, have brought into account as output tax an amount that was not output tax due,
they shall be liable to credit the person with that amount.
Amendments
Subs (1A) added by Finance (No. 2) Act 2005 section 3(2) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(1B) Where a person has for a prescribed accounting period (whenever ended) paid to the Commissioners an amount by way of VAT that was not VAT due to them, otherwise than as a result of—
(a) an amount that was not output tax due being brought into account as output tax, or
(b) an amount of input tax allowable under section 26 not being brought into account,
the Commissioners shall be liable to repay to that person the amount so paid.
Amendments
Subs (1B) added by Finance (No. 2) Act 2005 section 3(2) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(2) The Commissioners shall only be liable to [credit or]1 repay an amount under this section on a claim being made for the purpose.
Amendments
1 Inserted by Finance (No. 2) Act 2005 section 3(3) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(2A) Where—
(a) as a result of a claim under this section by virtue of subsection (1) or (1A) above an amount falls to be credited to a person, and
(b) after setting any sums against it under or by virtue of this Act, some or all of that amount remains to his credit,
the Commissioners shall be liable to pay (or repay) to him so much of that amount as so remains.
Amendments
Subs (2A) inserted by Finance (No. 2) Act 2005 section 3(4) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(3) It shall be a defence, in relation to a claim [under this section by virtue of subsection (1) or (1A) above, that the crediting]1 of an amount would unjustly enrich the claimant.
Amendments
1 Substituted by Finance (No. 2) Act 2005 section 3(5) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(3A) Subsection (3B) below applies for the purposes of subsection (3) above where—
(a) an amount would (apart from subsection (3) above) fall to be credited under subsection (1) or (1A) above to any person (“the taxpayer”), and
(b) the whole or a part of the amount brought into account as mentioned in paragraph (b) of that subsection has, for practical purposes, been borne by a person other than the taxpayer.
Amendments
Subs (3A) Substituted by Finance (No. 2) Act 2005 section 3(6) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(3B) Where, in a case to which this subsection applies, loss or damage has been or may be incurred by the taxpayer as a result of mistaken assumptions made in his case about the operation of any VAT provisions, that loss or damage shall be disregarded, except to the extent of the quantified amount, in the making of any determination—
(a) of whether or to what extent the [crediting]1 of an amount to the taxpayer would enrich him; or
(b) of whether or to what extent any enrichment of the taxpayer would be unjust.
Amendments
Subs (3B) inserted by Finance Act 1997 section 46(1) with effect for the purposes of making any repayment on or after 19 March 1997, even if the claim for the repayment was made before that day.
1 Substituted by Finance (No. 2) Act 2005 section 3(7) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(3C) In subsection (3B) above—
“the quantified amount” means the amount (if any) which is shown by the taxpayer to constitute the amount that would appropriately compensate him for loss or damage shown by him to have resulted, for any business carried on by him, from the making of the mistaken assumptions; and
“VAT provisions” means the provisions of—
(a)any enactment, subordinate legislation or Community legislation (whether or not still in force) which relates to VAT or to any matter connected with VAT; or
(b) any notice published by the Commissioners under or for the purposes of any such enactment or subordinate legislation.
Amendments
Subs (3C) inserted by Finance Act 1997 section 46(1) with effect for the purposes of making any repayment on or after 19 March 1997, even if the claim for the repayment was made before that day.
(4) The Commissioners shall not be liable on a claim under this section—
(a) to credit an amount to a person under subsection (1) or (1A) above, or
(b) to repay an amount to a person under subsection (1B) above,
if the claim is made more than [4 years]1 after the relevant date.
Amendments
Subs (4) substituted by Finance (No. 2) Act 2005 section 3(8) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
1 Substituted by Finance Act 2008 section 118 and Schedule 39 para 36 from 1 April 2009.
(4ZA) The relevant date is—
(a) in the case of a claim by virtue of subsection (1) above, the end of the prescribed accounting period mentioned in that subsection, unless paragraph (b) below applies;
(b) in the case of a claim by virtue of subsection (1) above in respect of an erroneous voluntary disclosure, the end of the prescribed accounting period in which the disclosure was made;
(c) in the case of a claim by virtue of subsection (1A) above in respect of an assessment issued on the basis of an erroneous voluntary disclosure, the end of the prescribed accounting period in which the disclosure was made;
(d) in the case of a claim by virtue of subsection (1A) above in any other case, the end of the prescribed accounting period in which the assessment was made;
(e) in the case of a claim by virtue of subsection (1B) above, the date on which the payment was made.
In the case of a person who has ceased to be registered under this Act, any reference in paragraphs (b) to (d) above to a prescribed accounting period includes a reference to a period that would have been a prescribed accounting period had the person continued to be registered under this Act.
Amendments
Subs (4ZA) added by Finance (No. 2) Act 2005 section 3(8) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(4ZB) For the purposes of this section the cases where there is an erroneous voluntary disclosure are those cases where—
(a) a person discloses to the Commissioners that he has not brought into account for a prescribed accounting period (whenever ended) an amount of output tax due for the period;
(b) the disclosure is made in a later prescribed accounting period (whenever ended); and
(c) some or all of the amount is not output tax due.
Amendments
Subs (4ZB) added by Finance (No. 2) Act 2005 section 3(8) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(4A) Where—
(a) an amount has been credited under subsection (1) or (1A) above to any person at any time on or after 26th May 2005, and
(b) the amount so credited exceeded the amount which the Commissioners were liable at that time to credit to that person,
the Commissioners may, to the best of their judgement, assess the excess credited to that person and notify it to him.
Amendments
Subs (4A) substituted by Finance (No. 2) Act 2005 section 3(9) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(4AA) An assessment under subsection (4A) shall not be made more than 2 years after the later of—
(a) the end of the prescribed accounting period in which the amount was credited to the person, and
(b) the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners.
Amendments
Subs (4AA) inserted by Finance Act 2008 section 120(3) from 19 March 2008.
(4B) ...
Amendments
Subs (4B) effectively repealed by Finance (No. 2) Act 2005 section 3(9) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
(4C) Subsections (2) to (8) of section 78A apply in the case of an assessment under subsection (4A) above as they apply in the case of an assessment under section 78A(1).
Amendments
Subs (4C) inserted by Finance Act 1997 section 47(6) from 4 December 1996.
(5) ...
Amendments
Subs (5) effectively repealed by Finance Act 1997 section 47(1) subject to section 47(3) and (4) with effect from 18 July 1996 as a provision applying for the purposes of the making of any repayment on or after that date to all claims under Value Added Tax Act 1994 section 80.
(6) A claim under this section shall be made in such form and manner and shall be supported by such documentary evidence as the Commissioners prescribe by regulations; and regulations under this subsection may make different provision for different cases.
(7) Except as provided by this section, the Commissioners shall not be liable to credit or repay any amount accounted for or paid to them by way of VAT that was not VAT due to them.
Amendments
Subs (7) substituted by Finance (No. 2) Act 2005 section 3(10) with effect in any case where a claim under section 80(2) was made on or after 26 May 2005, whenever the event occurred in respect of which the claims is made.
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