Repayment of input tax credit
Where the amount of input tax credit for a prescribed accounting period exceeds the amount of any output tax due for that period, HMRC will normally repay the difference1. However, there are occasions on which HMRC seeks to refuse repayment, or to set-off2 a repayment due in one accounting period3 against actual or perceived debts arising in another accounting period.
The question of the power of a member state to withhold repayment has been considered by the European Court of Justice4. The Court found that member states are not, in principle, precluded from withholding refundable amounts of VAT where there
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Web page updated on 17 Mar 2025 14:13