HMRC internal manual

VAT Civil Penalties

VCP10933 - Discretion, reasonable excuse and mitigation: Reasonable excuse

Section 66(7) of the VAT Act 1994 states that where a reasonable excuse exists there is noliability to a penalty.

If a trader provides satisfactory evidence to demonstrate that the EC Sales List (ESL) wasposted in good time that evidence should be accepted as a reasonable excuse.

However, Section 71 of the VAT Act 1994 does not allow lack of funds or reliance on athird party as a reasonable excuse.