On 21/05/2013,
you requested for the version in force on 21/05/2013
incorporating all amendments published on or before 21/05/2013.
The closest version currently available is that of 31/07/2005.
19.
—(1) A taxable person shall, in respect of supplies made by him, account for and pay tax by reference to such accounting periods as the Minister may by regulations prescribe (referred to in this Act as a prescribed accounting period) at such time and in such manner as may be determined by the regulations and such regulations may make different provisions for different circumstances.
(2) Subject to this section, a taxable person is entitled at the end of each such period to credit for so much of his input tax as is allowable under section 20, and then to deduct that amount from any output tax that is due from him.
(3) Subject to subsection (4) —
(a)
“input tax”, in relation to a taxable person, means the following tax:
(i)
tax on the supply to him of any goods or services; and
(ii)
tax paid or payable by him on the importation of any goods,
being (in either case) goods or services used or to be used for the purpose of any business carried on or to be carried on by him; and
(b)
“output tax” means tax on supplies which a taxable person makes.
(3A) For the purpose of subsection (3)(a)(ii), tax payable by a taxable person on the importation of goods shall not include any tax that is accountable pursuant to regulations made under section 27A until such time as the tax has in fact been accounted for in accordance with those regulations.
(4) Where goods or services supplied to a taxable person, or goods imported by him, are used or to be used partly for the purposes of a business carried on or to be carried on by him and partly for other purposes, tax on supplies and importations shall be apportioned so that only so much as is referable to his business purposes is counted as his input tax.
(5) Subject to subsections (5A), (6) and (7), if either no output tax is due at the end of the period, or the amount of the credit exceeds that of the tax, then, the amount of the credit or, as the case may be, the amount of the excess shall be paid to the taxable person by the Comptroller.
(5A) In an accounting period —
(a)
where the tax accounted for by the taxable person pursuant to regulations made under section 27A is equal to or exceeds the amount of credit or excess referred to in subsection (5), the amount of the credit or excess shall be nil; and
(b)
where the tax accounted for is less than the amount of credit or excess, the amount of the credit or excess shall be the amount of the credit or excess less the amount of that tax.
(6) The whole or any part of the credit may, subject to and in accordance with regulations, be held over to be credited in and for a subsequent period; and the regulations may allow for it to be so held over either on the taxable person’s own application or in accordance with general or special directions given by the Comptroller from time to time.
(7) Where at the end of any period an amount is due under subsection (5) to a taxable person who has failed to submit returns, to comply with any reasonable request by the Comptroller for information or to pay tax or penalty for any period as required by this Act, the Comptroller may —
(a)
withhold payment of that amount until that person has submitted the returns, complied with the request or paid the tax or penalty, as the case may be; and
(b)
deduct from the amount due any tax or penalty which the taxable person is liable to pay and which remains unpaid.
(8) No deduction shall be made under subsection (2) nor shall any payment be made under subsection (5), except on a claim made in such manner and within such time as may be prescribed by regulations.
(9) In the case of a person who has made no taxable supplies in the period concerned or any previous period, payment under subsection (5) shall be made subject to such conditions (if any) imposed by the Comptroller as he thinks fit, including conditions as to repayment in specified circumstances.
(10) Subject to subsections (8) and (9), any payment due under subsection (5) shall be paid within such time as may be prescribed by regulations.
(11) If the Comptroller fails to make payment within the prescribed time, interest on such amount as is outstanding shall, subject to such conditions as may be prescribed, be paid to the taxable person at such rate as may be prescribed and calculated in accordance with the regulations.
(12) Except as the Comptroller otherwise allows, where —
(a)
a taxable person fails to pay his supplier the consideration or any part thereof for the supply of any goods or services made by his supplier to him; and
(b)
the taxable person has credited under subsection (2) the input tax to which the consideration or the part thereof which he failed to pay relates,
the taxable person shall account of an amount equal to such input tax —
(i)
in the prescribed accounting period during which the initial specified period expires; and
(ii)
in accordance with the method which he was required to use when he first credited the input tax,
and the taxable person shall repay such amount to the Comptroller at the same time as any tax in respect of the prescribed accounting period would be payable by him.
(12A) Where a taxable person —
(a)
has complied with subsection (12); and
(b)
during the subsequent specified period, pays his supplier the whole or part of the consideration for the supply of goods or services referred to in subsection (12)(a),
the taxable person shall be entitled to treat an amount equal to the input tax relating to the payment referred to in paragraph (b) as if it were input tax for the prescribed accounting period during which the payment was made.
(13) The Minister may by regulations provide —
(a)
for tax on the supply of goods or services to a taxable person, or paid or payable by him on the importation of goods, to be treated as his input tax only if and to the extent that the charge to tax is evidenced and quantified by reference to such documents as may be specified in the regulations or as the Comptroller may direct either generally or in particular cases or classes of cases;
(b)
for a taxable person to count as his input tax, in such circumstances, to such extent and subject to such conditions as may be prescribed, tax on the supply to him of goods or services or paid by him on the importation of goods notwithstanding that he was not a taxable person at the time of the supply or payment;
(c)
for a taxable person that is a body corporate to count as its input tax, in such circumstances, to such extent and subject to such conditions as may be prescribed, tax on the supply or importation of goods acquired for it before its incorporation or on the supply of services before that time for its benefit or in connection with its incorporation;
(d)
in the case of a person who has been, but is no longer, a taxable person, for him to be paid by the Comptroller the amount of any tax on a supply of services made to him for the purposes of the business carried on by him when he was a taxable person.
(14) The Minister may by regulations provide, in relation to such supplies and importations as the regulations may specify, that tax charged on them or any part thereof is to be excluded from any credit under this section; and —
(a)
any such provision may be framed by reference to the description of goods or services supplied or goods imported, the person by whom they are supplied or imported or to whom they are supplied, the purposes for which they are supplied or imported, or any circumstances whatsoever; and
(b)
such regulations may contain provision for consequential relief from output tax.
(15) In this section —
“initial specified period” means a period of 12 months from the due date for payment of the consideration or the part thereof, as the case may be, by the taxable person to his supplier;
“subsequent specified period” means —
(a)
where the prescribed accounting period during which the relevant input tax was first credited under subsection (2) ends before 1st January 2007, a period —
(i)
commencing on the day immediately following the end of the initial specified period; and
(ii)
ending on a day 6 years from the end of that prescribed accounting period; or
(b)
where the prescribed accounting period during which the relevant input tax was first credited under subsection (2) ends on or after 1st January 2007, a period —
(i)
commencing on the day immediately following the end of the initial specified period; and
(ii)
ending on a day 5 years from the end of that prescribed accounting period.
[UK VAT Act 1983, s. 14]