Section 172E — Value Added Tax Regulations 1995: Restoration of an entitlement to credit for input tax

Restoration of an entitlement to credit for input tax 172E 1 Where—

a the purchaser has made an entry in his VAT account in accordance with regulation 172D (“the input tax repayment”);

b he has made the return for the prescribed accounting period concerned, and has paid any VAT payable by him in respect of that period;

and c the claimant has made a repayment in accordance with regulation 171 in relation to the claim concerned, the purchaser shall make an entry in his VAT account in accordance with paragraphs (2) and (3) below.

2 The purchaser shall make a positive entry in the VAT allowable portion of that part of his VAT account which relates to the prescribed accounting period of his in which the repayment has been made.

3 The amount of the positive entry referred to in paragraph (2) above shall be such amount as is found by multiplying the amount of the input tax repayment by a fraction of which the numerator is the amount repaid by the claimant and the denominator is the total amount of the claim.

4 None of the circumstances to which this regulation applies is to be regarded as giving rise to any application of regulations 34 and 35.