New Means of Transport: Why a penalty arises: The Law supporting the penalty
Please note: the Section 67 VATA 1994 penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 Finance Act 2008. The Failure to Notify penalty applies to obligations to notify the acquisition of a new means of transport on or after 01/04/2010. The penalty under Section 67 VATA 1994 continues to apply where the obligation to notify the acquisition of a new means of transport occurs before 01/04/2010.
Please see the Compliance Handbook CH70000 for more information about the Failure to Notify penalty.
Penalties for a breach of New Means of Transport (NMT) requirements are supported by the legislation at
- Schedule 11 of the Value Added Tax Act 1994.
- Regulation 148 of the Value Added Tax Regulations 1995 (SI 1995/2518).