VAEC6550 - VAT assessment forms: Production of VAT655

This guidance deals with interest matters in respect of prescribed accounting periods starting on or before 31 December 2022. Interest matters with effect from 01 January 2023 are dealt with under Finance Act 2009.

Please see Compliance Handbook page CH140000 onwards to find the new interest rules guidance.

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.

When the VAT641 is processed, the VAT655 Notice of Assessment is automatically printed by the mainframe computer and sent to the local office, by either data post or first class mail, for issuing to the trader.

The notification is produced as a package containing a VAT655 incorporating

  • A summary sheet showing the overall tax and interest assessed, and
  • An assessment detail page showing the value of tax assessed in each accounting period.

In addition there should be a form VAT667 Statement of Account, showing the trader’s total liability held on the VAT computer at the time the assessment was processed, including the assessment details.

Two copies of the notice are produced, marked ‘Trader copy’ and ‘Local office copy’.

The local office copy contains extra information which does not appear on the trader’s copy.

At this stage, with the exception of amendments and withdrawal of assessments, the computer calculations resulting from the input of the VAT641 are held in a pending state and any assessment is still

  • not enforceable
  • not offset against tax claims, or
  • in the case of over-declarations, not repaid.

An opportunity then exists for you to vet the documents for accuracy before they are issued to the trader.

For guidance on

  • the action taken at a local office upon receipt of a form VAT655, see VAEC6551.
  • Non receipt of VAT655 by issuing office, see VAEC6552.