A. No, where an overpayment is received due to a mistake by a customer it is not consideration for any supply and is therefore outside the scope of VAT (VATSC63600). However, if supplies were going to be made to the customer in future, and the overpayment used as a payment or part payment for those future supplies, then at this point it does become consideration for a supply and liable to VAT.
If you have a VAT query why not contact the VAT Advice Line on 0844 892 2470 to discuss the implications. Our team of experts have a wealth of experience and can also provide a written consultancy service at £180 per hour plus VAT.
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