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HMRC internal manual

VAT Civil Penalties

HM Revenue & Customs
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Belated Notification Penalty: When Does A Penalty Arise: Acquisitions

Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008.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 the 1 January 1993, in accordance with the VAT Act 1994, Schedule 3. Paragraph 3, and Schedule 3 Paragraph 8(2) if a trader

  • exceeds the registration threshold (Backward look) for acquisitions they must notify HMRC within 30 days of the end of the month, or
  • has reasonable grounds for believing they will exceed the registration threshold (Forward look) in the future, they must notify HMRC within 30 days of anticipating exceeding the acquisition threshold
  • is exempt from registration and makes an acquisition that is not zero rated they must notify HMRC within 30 days of the day the acquisition was made

Note: For further guidance on registration of acquisitions see V1-28.

If the trader does not comply with these conditions they will be liable to a belated notification penalty.