Value Added Tax Act 1994 section 25

Overpayments

Section 25 of Schedule 9ZE sets out the rules for claiming refunds or credits where a participant in a special scheme has overpaid UK VAT or been incorrectly assessed for VAT that was not due.

• A claim can be made where a special scheme return included an amount of UK VAT that was not actually due, or where UK VAT was paid as a scheme participant but was not owed
• A claim can also be made where HMRC has assessed a scheme participant to VAT and the assessment included an amount that was not due
• HMRC must repay the overpaid amount or credit the amount not due, and pay out any balance remaining after setting off other sums owed under the Act
• Claims for overpayments reported on a special scheme return must first be made by correcting the return under Article 61 of the Implementing Regulation, or submitted directly to HMRC once the amendment window has expired, and repayments are limited to what is required by Article 63 of the Implementing Regulation