Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Civil Penalties

From
HM Revenue & Customs
Updated
, see all updates

Calculation and notification of the penalty: Initial action

Step 1 On receipt of a printed D1238 or notification from another source, obtain a printout for the trader from the VIES computer system to check that the ESL is still outstanding, then if
  • the ELS is still outstanding, check the compliance spreadsheet, and the Electronic Folder (EF) for a record of any action taken, if

  • a record shows a Tick Box letter has already been issued, consider issuing a Penalty Liability Notice, see VCP10945.
  • there is no record of a Tick Box letter being issued, go to Step 2    
         
      Step 2 * Prepare an actions sheet, see VCP10946, in the EF
  • issue the Tick Box letter
  • record the date of issue on the Compliance Spreadsheet, see VCP10946, then if

  • you receive the Tick Box letter back, go to Step 3
  • the Tick Box letter is not returned, go to Step 11    
      Step 3 If the Tick Box letter has
  • Box 1 ticked, go to Step 4
  • Box 2 ticked, go to Step 5
  • Box 3 ticked, go to Step 6
  • Box 4 ticked, go to Step 7
  • Box 5 ticked, go to step 8
  • Box 6 ticked, go to Step 9
  • Box 7 ticked, go to Step 10    
      Step 4 A duplicate copy of the original ESL has been received, check if
  • It is more than 28 days have elapsed from the date the trader claims to have submitted his original ESL and it still not on VIES

  • assume that the original has not been processed
  • record a note of action taken in the EF
  • send the ESL to the VCU.

 

  • It is less than 28 days have elapsed from the date the trader claims to have submitted his original ESL take no action until 28 days have elapsed then recheck VIES. If the ELS is still not on VIES

  • assume that the original has not been processed
  • record a note of action taken in the EF
  • send the ESL to the VCU.    
      Step 5 ‘The dates of my VAT returns are not in line with the period of the EC Sales List and no supplies were made during this period’. If this box is ticked
  • record a note of action taken in EF
  • close the case by entering clearance code 1 on the compliance spreadsheet    
      Step 6 VAT 100 Box 8 completed in error
  • prepare form VAT479 to correct VAT100 Box 8
  • prepare VAT19 for cessation date to be input if appropriate
  • close case on the compliance spreadsheet
  • record a note of action taken on EF    
      Step 7 No entry on a EC Sales List is needed
  • record note of action taken in EF
  • record on compliance spreadsheet    
      Step 8 Sales to private individuals
  • prepare VAT479 to correct VAT100 Box 8
  • prepare VAT19 for cessation date to be input if appropriate
  • close case on compliance spreadsheet
  • record a note of action taken on EF    
      Step 9 Trader acknowledgement and EC Sales list submitted
  • send EC Sales List to VCU for processing
  • record a note of action taken in EF    
      Step 10 Box 7 ‘Other’ ticked
  • deal with accordingly
  • pass to manager if necessary    
      Step 11 If no response is received you must monitor future quarters for possible issue of a PLN. Record all action taken on the action record sheet.