VAEC4100 - Recovery assessments: Recovery of incorrect late claims to input tax

The procedural guidance in this manual only covers the VAT Mainframe and VISION processes. For guidance on the Making Tax Digital and ETMP processes for fully migrated customers, see VAEC0200 and the Making Tax Digital for VAT compliance toolkit.

This page concerns Section 73(2) assessments to recover late claims to input tax made by an incorrect error correction.

If the period in which the error correction notification was paid or credited is out of time for assessment under Section 73, no action can be taken.

If the period is in time, make and notify the preferred and alternative section 73 assessments as per specimen letter VAT(LC)27: Recovery Assessment - incorrect late input tax claim, which is available on SEES.

Complete and process a VAT 641 for the preferred assessment(s), but do not issue the VAT 655 to the trader.

Mark the top of the VAT 641 “For accounting purposes only. Do not issue outputs”. Allocate the tax to the period in which the error correction notification was made.