Demand for VAT: Recovering a debt to the Crown: Definition of an unauthorised person
Section 67(2) of the VAT Act 1994 defines who is not authorised to issue an invoice:
‘67(2) In subsection (1)(c) above, “an unauthorised person” means anyone other than-
(a) a person registered under this Act; or
(b) a body corporate treated for the purposes of section 43 as a member of a group; or
(c) a person treated as a taxable person under regulations made under section 46(4); or
(d) a person authorised to issue an invoice under regulations made under paragraph 2(12) or Schedule 11; or
(e) a person acting on behalf of the Crown.’
In practice an unauthorised person will normally mean a person who has issued an invoice charging as sum as VAT:
- while not registered for VAT because they are below the registration threshold;
- after deregistration;
- prior to the date on which they become liable to be registered; or
- farmers not certified to use the flat rate scheme who issue a flat rate scheme invoice.
Traders who exceed the turnover threshold and thus become liable to registration should be considered for Belated Notification Penalty.