Value Added Tax Act 1994 section 74

Interest on VAT: "reckonable date"

Section 74 / Schedule 9ZE paragraph 20 defines the "reckonable date" from which interest begins to run on VAT amounts recovered or recoverable by assessment under the special schemes for distance selling and other arrangements.

• Where a refund was correctly paid but later turns out to have been wrong due to changed facts, the reckonable date is the first day after the end of the tax period in which the triggering events occurred.
• For other assessments made under the special scheme rules, the reckonable date is the latest date by which the relevant special scheme return was due for the tax period in question.
• For assessments relating to amounts that should have been declared under the special scheme but were not, the reckonable date is the day after the end of the relevant tax period.
• These rules ensure that interest accrues from a clearly defined starting point that reflects when the VAT obligation arose or when the incorrect payment was made.