CH146470 - Interest: repayment interest: special provisions for VAT: common period rule for VAT
You must check whether, and from which date, the FA 2009 interest rules apply to the tax or duty you are dealing with. See CH140160 for full details.
A special provision creates a ‘common period’ for VAT where for any period of time;
- an amount of VAT that carries late payment interest is due and payable by a person (the overdue payment), and
- an amount of VAT credit that carries repayment interest is payable to the person (the VAT credit)
During the common period late payment interest or repayment interest will accrue only on the remainder/residual amount after the VAT credit and overdue payment are set off against each other.
The common period can be for different accounting periods or the same accounting period.