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HMRC internal manual

VAT Civil Penalties

HM Revenue & Customs
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Calculation and notification of the penalty: Time limits

Penalty assessments under Section 66 vat Act 1994 are governed by Section 77 of the VATAct 1994.

A penalty for failure to submit an EC Sales list must be assessed

  • within 3 years of the event that gave rise to the penalty, and
  • made within 2 years from you having sufficient facts to show there has been a default.

In order to have maximum effect for future compliance, penalties should be assessed at the earliest possible opportunity.