What is unjust enrichment?

Where an overpayment of Value-Added Tax (VAT) arises, you may claim a refund of the overpaid VAT from Revenue. For example, if you charge a higher rate of VAT on your supplies.

Such a repayment can be refused where this would lead to you being unjustly enriched. Unjust enrichment occurs where a person would get a windfall gain, if refunded tax which was collected and paid to Revenue in error. This occurs where the cost of the VAT overcharged was actually passed on to your customers in the price of your goods or services.

We will not normally refund tax which has been charged to your customer. Instead, you must provide full details in writing of the circumstances of the case together with a calculation of the amount of tax due for each taxable period of the claim.

In addition, you are required to:

• submit such documentation in support of your claim as is requested by Revenue
• and
• make adequate arrangements to reimburse your customers the overcharged VAT.

If you do not reimburse your customers within 30 days of receiving a refund from Revenue, you must pay back the amount refunded.