VBDR5800 - Repayment of input tax: How much input tax should be repaid?

The amount of input tax to be repaid is calculated in the following way:

  • Input tax originally deducted
  • x unpaid consideration (gross amount) at the end of the relevant period
  • ÷ total consideration for the supply.

An example of the calculation is shown in Notice 700/18 Relief from VAT on bad debts.