Value Added Tax Act 1994 section 80B

Assessments of amounts due under section 80A arrangements

Section 80B gives HMRC the power to assess and recover amounts from a person who has received a VAT overpayment credit but has not properly reimbursed their customers under the required reimbursement arrangements.

• Where a person is obliged to repay amounts to HMRC under the reimbursement arrangements required by section 80A, HMRC may assess the amount due using their best judgement and notify the person accordingly.
• If a person received a gross credit for overpaid VAT but reimbursed their customers less than that gross credit, they lose entitlement to the excess — and HMRC may assess and recover that excess amount.
• Any amount already reimbursed to customers is treated as first reducing the amount the person would otherwise owe back to HMRC, and for these purposes nil counts as an amount.
• HMRC must make any such assessment within two years of obtaining evidence that, in their opinion, is sufficient to justify it.

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