Value Added Tax Act 1994 section 30

Interest on VAT

Section 30 of Schedule 9ZA establishes how interest is charged or paid in relation to VAT on supplies of goods removed from or to Northern Ireland, particularly where adjustments are needed following changes in consideration or other corrections.

• Where VAT has been underpaid or overpaid due to adjustments in the value of supplies involving Northern Ireland, interest rules apply to ensure the correct amount is settled with HMRC.
• Late payment interest may be charged by HMRC where additional VAT becomes due as a result of retrospective changes to the consideration for a supply.
• Repayment interest may be due from HMRC where a trader has overpaid VAT following such adjustments, ensuring the trader is compensated for the period of overpayment.
• The interest provisions align with the broader late payment interest and repayment interest framework introduced under sections 101 and 102 of the Finance Act 2009, as applied specifically to VAT.