New Means of Transport: Why a penalty arises: The legal power to impose a 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Please note: the Section 67 VATA 1994 penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 Finance Act 2008.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.
If the legal requirements are not met we may impose a penalty under Section 65, 66 or 67 of the VAT Act 1994
Power to impose penalty on a supplier of NMT
- Section 65 gives us power to impose a penalty if an EC Sales List (VAT 411) contains a material inaccuracy.
- Section 66 gives us power to impose a penalty if an EC Sales List (VAT 411) is not submitted within the time limits specified within the VAT Regulations 1995, see VCP11414.
- VCP11000 and VCP10900 provide guidance on all aspects of EC sales lists.
Power to impose a penalty on an acquirer of NMT
- Section 67 gives us the power to impose a penalty to failure to notify and / or pay within the required timescale, see VCP11413.