Revenue and Customs Brief 4/18 - aligning time limits for VAT refund schemes
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This brief sets out HMRC's policy on
the changes to the time limits for VAT refund schemes if you're a local
authority, fire authority, police or similar body.
Published 25 June 2018
1. Purpose of this brief
This brief is to notify you of a change in time limits for claiming
VAT refunds from 1 July 2018, in accordance with Section 33 of the
Value Added Tax Act 1994.
2. Who should read this
You should read this if you’re a local authority, fire, police
authority or similar body that can make VAT refund claims for costs
linked to your statutory obligations.
Local authorities, fire authorities, the police and similar bodies
perform statutory functions which are treated as outside the scope of
VAT. Section 33 of the Value Added Tax Act 1994 allows you to claim
refunds for associated VAT costs, for example on domestic refuse
disposal or social care.
The time limit for such claims is being extended from 3 to 4 years,
to align with normal VAT time limits. This change applies from 1 July
2018. No claim can be made for goods imported or acquired on goods or
services supplied before 30 June 2015.
The time limit during which HMRC may seek adjustments relating to
claims is also extended from 3 to 4 years.
There will be a transitional period to enable you to adjust to the
new requirements and to ensure that accounting periods that are out of
time on 30 June 2018 are not bought back in time by the change.
Between 30 June 2018 and 30 June 2019 the earliest accounting period
for which an adjustment may be made is that ending on 30 May 2015.
By 31 July 2019, the 4-year time limit will have come fully into
effect so that a claim for adjustment made on that date would go back
to the period ending 30 June 2015.
4. Further information
For further information see Local authorities and similar bodies
About the Author
© Crown Copyright 2018.
A licence is needed to reproduce this article and has been republished
for educational / informational purposes only. Article reproduced by
permission of HM Revenue & Customs.
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Article Published/Sorted/Amended on Scopulus 2018-06-25 14:04:00 in Tax Articles