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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.

In this example there has been Section 80 claim where unjust enrichment was applicable.

The business entered into the reimbursement arrangements but has failed to reimburse their customers. Business had a 拢10,000 outstanding VAT debt on file.

听	听
Output tax over-accounted for	拢10,000
Input tax credit wrongly claimed	拢0,000
Net over-accounting	拢10,000
Outstanding VAT debt	拢10,000
Total credit	(拢10,000)

In the above example 拢10,000 has been credited to the business鈥檚 VAT mainframe account. This amount was offset against their 拢10,000 debt leaving a nil net amount payable to the business, although effectively they will have received a 拢10,000 credit to their VAT account.

The business derived this benefit only on condition that their customers were to be reimbursed by the amount of 拢10,000.

If the business then fails to reimburse any part of this credited amount to their customers we must recover it from the business. If we do not do this then the business will have been unjustly enriched.

Therefore an assessment for 拢10,000 is made and notified to the business under the provisions of Section 80B(1B) to recover the amount of 拢10,000 credited to the business鈥檚 VAT account.

The processing and notification procedures for Section 80B assessments are outlined at VAEC5120.