Page 139 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

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.