A system update on 30th December caused the CDS to duplicate VAT charges on certain declaration and therefore businesses may have overpaid VAT on declarations.
HMRC have contacted customers using Duty Deferment Accounts (DDA) to recommend that they submit a Current Month Adjustment (CMA) form to correct any overpayments.
For those businesses who could not benefit from this solution the Joint Consultative Committee (JCCC) have issued the following steps:
- If a customer is VAT registered and uses Postponed VAT Accounting (PVA), review new guidance on gov.uk regarding how a correction can be made through a PVA statement on the next VAT return
- If a customer is VAT registered but payment was made by an immediate payment or cash account, the easiest way to recover overpayment is on the next VAT return
- If a customer is not VAT registered and paid by either an immediate payment or cash account, and did not submit a CMA last week, an Import VAT repayment can be made using the C235 form on CDS