VATF42500 - Basic interventions: input tax interventions: the supplies have not been paid for
Section 26A of the VAT Act 1994 specifies that a taxable person ceases to be entitled to credit for input tax where �the consideration for the supply to which that input tax relates, or any part of it, is unpaid at the end of the period of 6 months following the relevant date� (the ‘relevant date� being the date of the supply or, if later, the date on which the consideration for the supply became payable).
»Ê¹ÚÌåÓýapp requirement to repay input tax in these circumstances, and the method for doing so, is detailed in Regulations 172F to 172H of the VAT Regulations 1995 (SI 1995/2518).
General guidance on these provisions can be found in VBDR5000. Guidance on action to take can be found in MTOG3950 of the Missing Trader Intra-Community Fraud Specialist Investigations Operational Guidance.