Page 33 - F6 Slide - VAT Part 4 - Lecture Day 5

Payments Exceeding Consideration

 If amount received i.r.o. taxable supply > consideration charged

and

 Amount not refunded within 4 months

 Then excess payment = deemed to be consideration for services

supplied

 If excess payment is refunded after output tax has been accounted
for, vendor will be entitled to claim an additional input tax credit

Value of supply:

 The excess portion of the payment received.

Time of supply:

 The time of supply is deemed to be the last day of the tax period

during which the 4-month period ends.