Unauthorised issue penalty: Unauthorised Persons definitions: Practical definition of an Unauthorised Person
Please note: the S 67 VATA 1994 penalty has been replaced by the VAT and Excise Wrongdoing penalty introduced by Schedule 41 Finance Act 2008.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.
In practice an unauthorised person will normally mean a person who has issued an invoice showing an amount as being VAT
- while not registered for VAT because they are below the registration threshold
- after they have been deregistered
- prior to the date on which they become liable to be registered
- who is a farmer not certified to use the flat rate scheme, who issues a flat rate scheme invoice.
Note: Traders who exceed the turnover threshold and thus become liable to registration should be considered for a Belated Notification Penalty see VCP10370.