Value Added Tax Act 1994 section 74

Interest on VAT: "reckonable date" [Schedule 9ZD paragraph 26]

Section 74 and Schedule 9ZD paragraph 26 establish the "reckonable date" from which interest begins to run on VAT amounts recovered or recoverable by assessment in connection with the One Stop Shop (OSS) scheme.

• Where a refund or credit was correctly paid but should not have been given in light of later facts, interest runs from the first day after the end of the tax period in which the events occurred that authorised HMRC to make the assessment.
• In all other cases involving an OSS scheme return, the reckonable date is the latest date by which the OSS scheme return or a non-UK return was required to be submitted for the relevant tax period.
• Where the assessment relates to an amount under the special provision for OSS adjustments (section 73(3A) as modified by paragraph 23(2)), the reckonable date is the day after the end of the relevant tax period referred to in paragraph 33(2).
• The reckonable date is significant because it is the starting point from which HMRC charges interest on any VAT that is recovered or recoverable by assessment under the OSS scheme.