If a business makes an error in respect of its VAT accounting records or returns then it will need to correct these errors. This document discusses these in detail together with the procedure to be followed to correct these errors; the time limits; the penalty regime; VAT refunds; submitting an error notification; processing the error; and appeals.

Points discussed within this guidance note:

> Types of VAT errors

Correcting VAT errors are routinely encountered by businesses and this note provides an  overview of the typical  types of errors and how to correct vat errors and make adjustments by detailing the various procedures in relation to records, invoicing and VAT returns.

>> Records

>> Invoicing

> VAT return

There are two methods and will depend on the net value of the vat error and whether the erros were deliberate or not. A penalty may still be payable if the vat error was careless. VAT error corrections should be made using paper form VAT 652 and this note details the methods and procedures for notifications of errors in vat returns.

> Correcting VAT errors

>> When to correct an error

> Time limits

> HMRC discovers errors

>> Old penalty regime

>> Penalties for errors regime

>> Time limits

> Adjustments

> VAT refunds

> Submitting an error notification

> Processing the error

> Other matters

> Appeals

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