DMBM531220 - VAT: Annual accounting scheme: Return processing

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Annual return processing

Returns made under the annual accounting scheme are processed in the usual way.

If the return is not filed and an assessment made, the assessed amount will be equal tothe original liability as previously notified to the customer at the start of the annualreturn year.

Normal recovery procedures apply.

Part year standard return processing

If a customer is expelled from the scheme part way through the accounting year he willbe required to file a return covering that part of the accounting year which has elapsed.

Failure to file will result in a tax assessment being issued, apportioning the originaltax estimate over the period of the return.

If there are no inhibiting factors a direct assessment will be issued together with anautomatic DNIP. The D1126 ADA list will have an additional sheet listing these cases.

Where inhibiting factors exist the DMU will be notified by an indirect DNIP for manualaction.

Normal recovery action and surcharge procedures apply.