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HMRC internal manual

VAT Civil Penalties

Belated Notification Penalty: When Does A Penalty Arise: Distance selling

Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008. The Failure to Notify penalty applies to obligations to notify HMRC of a liability to be registered for VAT on or after 01/04/2010. The Belated Notification Penalty under Section 67 VATA 1994 continues to apply to obligations to notify a liability to be registered for VAT before 01/04/2010.

Please see the Compliance Handbook CH70000 for more details about the new failure to notify penalty.

From 1 January 1993 if a trader who operates in the European Community

  • exceeds the registration threshold for distance sales, or
  • makes distance sales of excisable goods, for any amount.

The trader must notify HMRC of a liability to register in the UK within 30 days after the day the liability arises in accordance with the VAT Act 1994, Schedule 2, paragraph 3. If they do not, they will be liable to a belated notification penalty.

Note: Further guidance on registration and registration thresholds can be found in V1-28 Registration.