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HMRC internal manual

VAT Assessments and Error Correction

From
HM Revenue & Customs
Updated
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Section 73(1) and 73(2) assessments: Explanation of the law

VAT registered business have a legal obligation to submit a return for a prescribed accounting period. Sometimes that return may be incomplete or incorrect.

Section 73(1) of the VAT Act 1994 gives HMRC the power to make an assessment to the best of their judgement in order to establish the trader’s true liability and create an enforceable debt for that period.

The time limits for assessments made under section 73(1) and 73(2) VAT Act 1994, are contained in Sections 73(6), 77(1) and 77(4). These time limits are explained at VAEC1130 and VAEC1150.