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HMRC internal manual

VAT Refunds

From
HM Revenue & Customs
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Claims for overdeclared output tax: Who can claim: Companies registered in divisions

Where an overdeclaration of output tax is made by a division of a company that is registered for VAT in the names of its divisions, the claim should be made by the division that made the overdeclaration. That is because the VAT account that is in error is that of the division in question.

If the divisional registration is cancelled and the company is once again registered for VAT under a single number, overdeclarations made by any divisions that were previously separately registered and now form part of the single registration can be claimed by the company.

Where an overdeclaration is made by a company that was previously registered for VAT under a single number and is now registered in the names of its divisions, the claim should be made by the division which has taken over the VAT registration number held by the ‘single company’ before it registered in the names of its divisions or by the headquarters division.

For example:

Alufa Ltd is registered for VAT under VAT registration number 123 4567 89. On 23 April 2012, it applies for permission to be registered in the names of its divisions and that application is given effect from 1 July 2012.

It is now registered as Binyamina Division of Afula Ltd, Carmel Division of Afula Ltd, Dalia Division of Afula Ltd and Eretz Division of Afula Ltd. Binyamina Division took over the VAT registration number previously held by Afula Ltd in its single registration and the other divisions were given new VAT registration numbers.

When the company tax manager discovers on 24 October 2012 that the company had overdeclared its output tax liability on the sale of E-Type Widgets between 1 October 2008 and the current date he puts in a claim. The claim for the accounting periods ending before 1 July 2012, should preferably be made by Binyamina Division. For the subsequent accounting periods, the claims should be made by the individual divisions that made the overdeclarations in question.