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HMRC internal manual

VAT Assessments and Error Correction

From
HM Revenue & Customs
Updated
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Demand for VAT: recovering a debt to the Crown: incorrectly charged VAT penalties

If you take action against an unregistered issuer of an invoice, you should consider his liability to a penalty under either the VAT Act 1994 Section 67(1) or paragraph 2 of Schedule 41 Finance Act 2008 for the issue by an unauthorised person of an invoice charging an amount as VAT.

If the issuer of an invoice is registered, he is not liable to a Section 67(1) or paragraph 2 penalty because the definition of unauthorised person does not include registered persons.

For further information on Section 67(1) penalties please refer to the guidance contained in the VAT Civil Penalties guidance.

For further information on paragraph 2 penalties please refer to the guidance contained in CH91100.