VATNIEU7630 - EC Sales Lists (ESLs): Errors
Error correction
ESL errors are notified to businesses automatically on form VAT 104(also now known as ECSLErr letter). The form shows the error lines and the reasons for the errors. Spaces are provided on the form for correction of the relevant data.
If a business identifies an error in its records they can correct the form online.
Penalties
Businesses who fail to submit an ESL when one is due, or submit an ESL late, may be liable to a daily rate civil penalty. If they submit an ESL that contains a material inaccuracy and fail to tell us, they may be liable to a penalty of £100. Material inaccuracies fall into 3 main categories:
- data missing from the ESL.
- lines on the ESL are factually incorrect.
- an invalid VAT number is used (for paper forms only)
Prior to receiving a penalty assessment, businesses must first have been issued with a penalty liability notice within the previous 12 months.
The penalty levels are:
| Penalty | Charge |
|---|---|
| 1st penalty | £5 per day |
| 2nd penalty | £10 per day |
| 3rd penalty | £15 per day |
| Subsequent penalties | £15 per day |
Reasonable excuse
Businesses will not be liable for a penalty if they can satisfy HMRC that they have a reasonable excuse. Each case is considered individually based on its merits. However, genuine mistakes, honesty and acting in good faith are not accepted as reasonable excuses. Also, the law provides that a reasonable excuse does not arise as a result of reliance on another person.