VAEC2950 - Section 73(1) and 73(2) assessments: Definition of underpayment and overpayment

The procedural guidance in this manual only covers the VAT Mainframe and VISION processes. For guidance on the Making Tax Digital and ETMP processes for fully migrated customers, see VAEC0200 and the Making Tax Digital for VAT compliance toolkit.

An underpayment means that the amount declared on a return or error correction notification, or an amount assessed has not been paid in full.

An overpayment means that the amount paid exceeds the amount declared or assessed.

Under and overpayments are not the same as under and over-declarations, see VAEC2930.