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HMRC internal manual

VAT Assessments and Error Correction

Demand for VAT: Assessment is not appropriate: Invoices issued by unauthorised person

Where an invoice shows an amount as VAT issued by an unauthorised person, as defined at VAEC9620, or in respect of a supply that is not liable to VAT, you cannot assess as the amount involved is not tax.

Recovery of the amount involved is normally sought from the person issuing the invoice under VATA 1994, Schedule 11 paragraph 5 as a debt due to the Crown. VAEC9600 provides full details on how and when to recover amounts as debts due to the Crown.

Unlike Section 73 VATA 1994, which prescribes time limits for the making of assessments, demands for amounts where an assessment is not appropriate are not restricted by any time limit constraints.