VAEC5100 - Recovery assessments: Section 73(7) assessments

The procedural guidance in this manual only covers the VAT Mainframe and VISION processes. For guidance on the Making Tax Digital and ETMP processes for fully migrated customers, see VAEC0200 and the Making Tax Digital for VAT compliance toolkit.

The text of Section 73(7) VATA 94 is not reproduced in this manual. These recovery assessments are made when there are irregularities in failing to account for goods received, acquired or imported.

Section 73(7) provides that where a taxable person has in the course of furtherance of his business, been supplied with goods, acquired goods from another member state, obtained possession or control of goods, or imported goods from outside of the member states, then we may require him to account to us for those goods.

If the taxpayer cannot prove that the goods:

• are available for supply,
• have been supplied,
• have been lost or destroyed, or
• have been exported or otherwise removed

then we may assess the VAT due, to best judgement, as though the goods had been supplied by him.