C2C1PART VACCOUNTING, PAYMENT AND RECORDS

Annotations:
Modifications etc. (not altering text)

C2C1Adjustments in the course of businessI138

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1

F2... This regulation applies where—

a

there is an increase in consideration for a supply, or

b

there is a decrease in consideration for a supply,

which includes an amount of VAT and the increase or decrease occurs after the end of the prescribed accounting period in which the original supply took place.

F31A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F91B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F111C

Where an increase or decrease in consideration relates to a supply in respect of which it is for the recipient, on the supplier’s behalf, to account for and pay the tax, the prescribed accounting period referred to in paragraph (1) is that of the recipient, and not the maker, of the supply.

But this paragraph does not apply to the circumstances referred to in regulation 38A.

F82

Where this regulation applies, both the taxable person who makes the supply and a taxable person who receives the supply shall adjust their respective VAT accounts in accordance with the provisions of this regulation.

3

F6Subject to paragraph (3A) below, the maker of the supply shall—

a

in the case of an increase in consideration, make a positive entry; or

b

in the case of a decrease in consideration, make a negative entry,

for the relevant amount of VAT in the VAT payable portion of his VAT account.

F13A

Where an increase or decrease in consideration relates to a supply on which the VAT has been accounted for and paid by the recipient of the supply, any entry required to be made under paragraph (3) shall be made in the recipient’s VAT account and not that of the supplier.

4

The recipient of the supply, if he is a taxable person, shall—

a

in the case of an increase in consideration, make a positive entry; or

b

in the case of a decrease in consideration, make a negative entry,

for the relevant amount of VAT in the VAT allowable portion of his VAT account.

F124A

In the case of an increase in consideration, no entry may be made under paragraph (4) unless the recipient of the supply holds the debit note which the supplier is required to provide under regulation 15C(2).

F105

Every entry required by this regulation must be made in that part of the VAT account which relates to the prescribed accounting period in which the increase in consideration or decrease in consideration occurs.

F46

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

None of the circumstances to which this regulation applies is to be regarded as giving rise to any application of regulations 34 and 35 F5except insofar as there is an error arising from a failure to make any entry required by this regulation.

F78

Paragraphs (4A) and (5) do not apply in cases where an adjustment in relation to an increase or decrease in consideration has been made in accordance with this regulation before 1st September 2019.