Any bad debt refund must be repaid to HMRC to the extent of the VAT element of any full or part-payment subsequently received (Value Added Tax Regulations 1995 (SI 1995/2518), reg. 171(1); VATA 1994, s. 36(7)). The claimant must include the VAT element on the VAT return, Form VAT 100, for the period in which he received the payment (reg. 171(2)). It is included in Box 1 opposite the legend ‘VAT due in this period on sales and other outputs’.