Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Legislation: VAT: Debts due to the crown

Tax or duty Legislation Legislation description  
       
VAT Paragraph 5 (1) of Schedule 11 to the VAT Act 1994 “VAT due from any person shall be recoverable as a debt due to the Crown.”  
VAT charged on unauthorised invoices Paragraph 5 (2) of Schedule 11 to the VAT Act 1994 “Where an invoice shows a supply of goods or services as taking place with VAT chargeable on it, there shall be recoverable from the person who issued the invoice an amount equal to that which is shown on the invoice as VAT or, if VAT is not separately shown, to so much of the total amount shown as payable as is to be taken as representing VAT on the supply.(3) Sub-paragraph (2) above applies whether or not-(a) The invoice is a VAT invoice in pursuance of paragraph 2(1) above; or(b) The supply shown on the invoice actually takes or has taken place, or the amount shown as VAT, or any amount of VAT, is or was chargeable on the supply; or(c) The person issuing the invoice is a taxable person;and any sum recoverable from a person under the sub-paragraph shall, if it is in any case VAT be recoverable as such and shall otherwise be recoverable as a debt due to the Crown.”  
Assessments S.73 (9) of the VAT Act 1994 “Where an amount has been assessed and notified to any person under subsection (1), (2), (3) (7), (7A) or (7B) above it shall, subject to the provisions of this Act as to appeals, be deemed to be an amount of VAT due from him and may be recovered accordingly, unless, or to the extent that, the assessment has subsequently been withdrawn or reduced.”  
Default surcharge, penalties and interest S.76 (9) of the VAT Act 1994 “If an amount is assessed and notified to any person under this section, then unless, or except to the extent that, the assessment is withdrawn or reduced, that amount shall be recoverable as if it were VAT due from him.”  
Interest overpayments S.78A (3) of the VAT Act 1994 “Where an amount has been assessed and notified to any person under subsection (1) above, that amount shall be deemed (subject to the provisions of this Act as to appeals) to be an amount of VAT due from him and may be recovered accordingly.”  
Recovery of overpaid VAT S.80 (4C) of the VAT Act 1994 “Subsections (2) to (8) of Section 78A apply in the case of an assessment under subsection (4A) above as they apply in the case of an assessment under Section 78A (1).”