Online VAT repayment returns will earn firms extra time
7th January 2011
HM Revenue and Customs (HMRC) have reassured firms that filing a repayment VAT return online will allow an extra seven days in which to submit the return.
The procedure follows the same time scale as with payment VAT returns.
Worries had surfaced that the extra seven days would not be available as a result of rules that demand an online VAT payment in order for the additional time to be allotted.
But the regulations do, in fact, provide for an extra seven days for a repayment VAT return.
Under regulation 25A(20) of the VAT Regulations 1995, "additional time is allowed to make a return using an electronic return system for which no payment is required to be made. That additional time is only as the Commissioners may allow in a specific or general direction".