Transitional period for claiming VAT overpaid or under claimed

1 May 2008

When the three-year cap for claims was first introduced in 1996 and 1997, businesses were not given a transitional period in which to claim VAT overpaid or under claimed before the changes. Through the Courts, this has been proven incorrect. Consequently, legislation will now be introduced allowing a transitional period to run until 31 March 2009.

During the transitional period, businesses that were registered for VAT between 1 April 1973 and 1 May 1997 will have the right to claim VAT overpaid or under claimed prior to the introduction of the 3-year cap. However, HM Revenue and Customs will also have the right to assess for any VAT claimed incorrectly in such claims.