§ Mr. Joel Barnett
asked the Chancellor of the Exchequer if it is his intention to pay cash in respect of the purchase tax rebate on stocks held at 31st March 1973, or whether it will be allowed as the credit against future VAT payments; and if he will make a statement.
§ Mr. Higgins
The rebate of purchase tax charged on stocks held for sale at 31st March 1973 will be treated as additional input tax deductible from a registered VAT trader's output tax at the end of his first VAT accounting period. If the total input tax exceeds the output tax the balance will be repaid. Details are given in Customs and Excise Notice No. 748.