VAEC2930 - Section 73(1) and 73(2) assessments: Definition of under declaration and over declaration

For information about retired VAT systems, go to VAEC0150. For information about Making Tax Digital for VAT and ETMP processes, go to VAEC0200.

There can be no under-declaration or over-declaration in a tax period unless a return has been submitted for the period.

In any single tax period an under-declaration or over-declaration is the net amount of all errors that you have discovered in that period.

Under-declarations of liability and over-declarations of liability are expressions defined in Part V - Accounting Payment and Records, Value Added Tax Regulations 1995.

Regulation 34(2) says;

'In this regulation'

(a)鈥渦nder-declarations of liability鈥� means the aggregate of鈥�(i)the amount (if any) by which credit for input tax was overstated in any return, and(ii)the amount (if any) by which output tax was understated in any return;(b)鈥渙ver-declarations of liability鈥� means the aggregate of鈥�(i)the amount (if any) by which credit for input tax was understated in any return, and(ii)the amount (if any) by which output tax was overstated in any return.