VATREC13134 - Credit and Debit notes: Dealing with problem cases: Scenario 3

Adjustments have been made but not in the correct prescribed accounting period.

Supplier

If there has been a decrease in consideration the supplier will have over declared in the first period and under declared in the adjusted period. If the amounts involved exceed regulation 34 monetary limits you should assess for the tax under declared and advise him to make a section 80 claim for the over declared tax.

If there has been an increase in consideration the supplier will have under declared in the first period and over declared in the adjusted period. You should assess for the under declaration and advise the supplier to either adjust his next return or if the amount exceeds the regulation 34 monetary limit he can make a section 80 claim

Customer

If there has been a decrease in consideration the customer will have over claimed input tax in the first period and under claimed input tax in the adjusted period. You should assess to recover the over claimed input tax and advise the customer to either adjust his next return or if the regulation 34 monetary limits are exceeded he should make an error correction notification.

If there has been an increase in consideration the customer will have under claimed in the first period and over claimed in the adjusted period. You should assess to recover the over claimed input tax in the adjusted period and advise the customer to correct his next return for the under claim in the first period or if the regulation 34 monetary limits are exceeded to make an error correction notification