Section 26AB — Value Added Tax Act 1994: Adjustment of output tax in respect of supplies under section 55A

Adjustment of output tax in respect of supplies under section 55A 26AB 1 This section applies if—

a a person is, as a result of section 26A, taken not to have been entitled to any credit for input tax in respect of any supply, and b the supply is one in respect of which the person is required under section 55A(6) to account for and pay VAT.

2 The person is entitled to make an adjustment to the amount of VAT which he is so required to account for and pay.

3 The amount of the adjustment is to be equal to the amount of the credit for the input tax to which the person is taken not to be entitled.

4 Regulations may make such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section.

5 Regulations under this section may in particular—

a make provision for the manner in which, and the period for which, the adjustment is to be given effect, b require the adjustment to be evidenced and quantified by reference to such records and other documents as may be specified by or under the regulations, c require the person entitled to the adjustment to keep, for such period and in such form and manner as may be so specified, those records and documents, d make provision for readjustments if any credit for input tax is restored under section 26A.

6 Regulations under this section may make different provision for different circumstances.