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HMRC internal manual

VAT Civil Penalties

HM Revenue & Customs
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Unauthorised issue penalty: Why a penalty arises: The law supporting the penalty

Please note: the S 67 VATA 1994 penalty has been replaced by the VAT and Excise Wrongdoing penalty introduced by Schedule 41 Finance Act 2008. The VAT and Excise Wrongdoing penalty applies where a person makes an unauthorised issue of an invoice on or after 01/04/2010. If an unauthorised invoice has been issued before 01/04/2010 the S 67 penalty will continue to apply.

Please see the Compliance Handbook CH90000 Penalties for more information about the VAT and Excise Wrongdoing penalty.

The law covering penalties for the issue of invoices by an unauthorised person that show an amount as being Value Added Tax (VAT) or an amount attributable to VAT is the VAT Act 1994.

The following sections are the mains areas that concern this penalty

  • Section 67(1) provides the power to impose a penalty for the unauthorised issue of VAT invoices, see VCP11213.
  • Section 67(2) and (7) define an unauthorised person, see VCP11230.
  • Section 70(1) provides the power to mitigate penalties, see VCP11253.