Value Added Tax Act 1994 section 33E

Power to extend refunds of VAT to other persons

Section 33E gives the Treasury a power to extend VAT refunds to specified persons who incur VAT on purchases or imports that are not for business purposes, subject to a funding reduction agreement with the Treasury.

• The Treasury can direct HMRC to refund VAT incurred by specified persons on non-business purchases or imports, provided the person has agreed with the Treasury that their funding will be reduced by all or part of the VAT refunded.
• Claims must be submitted by the "relevant day": for VAT-registered persons, this is the last day for filing the return covering the end of the financial year in which the supply or import occurred; for unregistered persons, it is three months after the end of that financial year.
• Where non-business goods or services cannot be conveniently separated from business-related ones, HMRC will calculate the refund by deducting from the total VAT chargeable the proportion it considers attributable to the business or business-treated supply.
• The refund does not extend to any VAT that is blocked from input tax credit under section 25(7), and the Treasury order specifying qualifying persons may include transitional provisions or savings.