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HMRC internal manual

VAT Civil Penalties

From
HM Revenue & Customs
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New Means of Transport: Why a penalty arises: Legal responsibilities of the acquirer of a new means of transport

Please note: the Section 67 VATA 1994 penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 Finance Act 2008.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.

The law states that the acquisition of a new means of transport must be notified to HMRC within 7 days of being acquired, or the date of arrival of the new means of transport into the United Kingdom, whichever is the later.

It also states that the VAT due on the new means of transport must be paid

  • at the time of notification, or
  • within 30 days from issue of a written demand (Form VAT 413).

Failure to notify or pay within the required timescale attracts a financial penalty.