A repayment supplement is added to certain late repayments of VAT, e.g. when input tax exceeds output tax as declared on a VAT return for a period (VATA 1994, s. 79; Value Added Tax Regulations 1995 (SI 1995/2518), reg. 198; Notice 700, para. 21.6 (2017 edn)).

In R & C Commrs v Our Communications Ltd [2013] BVC 1,852, the Upper Tribunal decided that s. 79 applies only to claims for VAT repayments that are made on a VAT return, i.e. s. 79 does not apply to a voluntary disclosure of under-claimed input tax. The company successfully reclaimed VAT by a voluntary disclosure. Arguably, the law should protect taxpayers from unreasonable delays by HMRC in repaying such VAT.

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