Value Added Tax Act 1994 section 31

Overpayments

Section 31 of Schedule 9ZD sets out the rules for reclaiming UK VAT that has been overpaid or incorrectly accounted for by participants in non-UK VAT schemes.

• A person who has included UK VAT in a non-UK return that was not actually due, or who has paid UK VAT as a non-UK scheme participant that was not due, may make a claim for repayment.
• A person assessed by HMRC for VAT that includes an amount not actually due may claim a credit for that amount.
• HMRC must repay overpaid amounts or credit amounts not due, and where a credit remains after any set-offs under the VAT Act, HMRC must pay the balance to the claimant.
• Claims must initially be made by correcting the non-UK return under Article 61 of the Implementing Regulation, or by applying directly to HMRC once the amendment window has closed, and repayment is limited to what Article 63 of the Implementing Regulation requires.