On 25 June 2018, HMRC published “Revenue and Customs Brief 4 (2018): aligning time limits for VAT refund schemes”. The Brief explains that bodies performing statutory functions, such as the Police and Local Authorities, which are outside the scope of VAT have the ability to claim refunds for associated VAT costs under section 33, VATA.

This has the effect of extending the time limit for claiming refunds from 3 to 4 years and reflects the time limits applicable to VAT recovery claims by taxable entities.

A copy of the Brief can be viewed here.