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HMRC internal manual

VAT Repayment Supplement Manual

From
HM Revenue & Customs
Updated
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Principles of repayment supplement: repayment supplement and set off

Section 81(3) VATA provides that where an amount is due from the Commissioners to any person and that person is liable to pay a sum by way of VAT, penalty, interest or surcharge, then the amounts can be set off and the obligations of both parties discharged.

Repayment supplement may therefore be set off against a taxpayer’s outstanding debt.