Input VAT Recovery Time Frame

Separate input-tax recovery timing from refund-credit deadlines

The period in which input tax may first be recovered and the deadline for requesting a refund of an accumulated credit are different questions. The 2026 Tax Procedures amendments introduce a general five-year credit-balance refund period, subject to specific and transitional rules. An old invoice should therefore be reviewed together with the affected return, correction route and credit history.

Track the conditions rather than just the invoice date

The invoice date, the date it reaches the business and the date an internal approval is completed may be different. Recovery timing should be assessed from the relevant conditions, including supporting evidence and the payment position. Posting every late invoice into the month it is found can therefore produce an incorrect result.

Keep a simple control showing receipt date, approval date, agreed payment terms and the period selected for recovery. Where an invoice is held in an operational inbox, arrange a regular transfer to finance. This turns the timing question into a documented process instead of an estimate made when the return is nearly due.

Review missed periods and unpaid invoices separately

The first opportunity to recover input VAT and an omission from a previously filed return are different issues. Identify the original eligible period and whether the immediately following period is relevant before choosing a correction route. Read the older clarification together with the current Tax Procedures rules.

Also monitor invoices that remain unpaid after recovery. A payment dispute, delayed approval or supplier account mismatch should be brought into the review rather than left only on the aged-payables report. Keep the original claim and any later adjustment connected so that a subsequent payment does not lead to a duplicate recovery.

Distinguish an input claim from an accumulated refund

Claiming eligible input tax in a return is not the same as requesting payment of an accumulated credit balance. The 2026 amendments introduce a general five-year credit-balance refund period, with specific and transitional rules. A review of old balances should therefore connect the return history to the remaining credit, not simply collect the oldest invoices.

Create a schedule by tax period showing the credit generated, amounts used, refunds requested and the balance still outstanding. Identify cases needing prompt professional attention. This makes it possible to prioritise an approaching limitation issue without confusing it with the initial eligibility of each purchase.

Prepare evidence that explains the chosen treatment

A useful recovery file contains the supplier document, commercial purpose, approval trail, payment evidence and the return workpaper reference. If the business uses an alternative document for a particular transaction, record the basis on which that document is accepted rather than assuming every document labelled invoice has the same status.

For material old omissions, prepare a brief explanation of why the error occurred and what will prevent repetition. Improving invoice routing, approval reminders or the unpaid-invoice review is often more effective than adding another general checklist. Retain the final correction decision and submission evidence with the affected period.