Penalties - VAT, excise and landfill tax wrongdoing

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Penalties - VAT, excise and landfill tax wrongdoing
  • What is a VAT, excise duty and landfill tax wrongdoing?
  • Unauthorised issue of an invoice showing or including VAT
  • Putting a product to use that attracts higher duty
  • Handling goods subject to unpaid excise duty
  • Knowingly permitting the disposal of material at an unauthorised waste site
  • Agents

This guidance note provides an overview regarding when HMRC may impose a penalty on a person for VAT, excise tax and landfill tax wrongdoing. This note should be read in conjunction with guidance notes Overview of the three penalties introduced from 1 April 2010, Penalties - VAT, excise and landfill tax wrongdoing - types of wrongdoing and Penalties - VAT, excise and landfill tax wrongdoing - calculating, assessing and collecting the penalty. More information can be found in HMRC factsheet: CC/FS12 .

What is a VAT, excise duty and landfill tax wrongdoing?

CH90100; FA 2008, Sch 41; De Voil Indirect Tax Service V5.345 (subscription sensitive)

With effect from 1 April 2010 a new penalty regime applies where a person:

  • makes an unauthorised issue of an invoice showing or including VAT where the person is not registered for VAT or is not authorised to issue an VAT invoice
  • misuses a product subject to a higher rate of excise duty
  • supplies a product subject to a higher rate of excise duty knowing that it will be misused, or
  • handles goods subject to unpaid excise duty
  • from 1 April 2018, makes, or knowingly causes, or knowingly permits a disposal of material at an unauthorised waste site
What is a ‘person’?

For the purposes of these penalty provisions a person is:

  • an individual
  • a company
  • a partner
  • a partnership
  • a representative member of a VAT group
  • a personal representative (this can be a lay person, a professional, or a corporate entity)
  • a pension scheme administrator
  • a trustee
  • collectives, partnerships and

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