Home / De-Voil / Part V5 Compliance, enforcement and appeals / Division V5.3 Penalties / Civil penalties / V5.346 Inaccuracy in EU sales statement or statement relating to VATA 1994 s 55A

Civil penalties

Commentary

V5.346 Inaccuracy in EU sales statement or statement relating to VATA 1994 s 55A

Part V5 Compliance, enforcement and appeals

V5.346 Inaccuracy in EU sales statement or statement relating to VATA 1994 s 55A

V5.346 Inaccuracy in EU sales statement or statement relating to VATA 1994 s 55A

EU sales statement

A person may be required to submit a statement to HMRC (known as an “EC sales statement”) in accordance with regulations1 made under VATA 1994 Sch 11 para 2(3). For the purpose of penalties under VATA 1995, s 65 and s 66, this includes a statement in respect of call-off stock (for which see V3.213A) under SI 1995/2518, reg 22ZA2 (for which see V5.271C).The requirements are described at V5.271–V5.273.

A person is liable to a penalty where3

  1.  

    (1)     he has submitted an EC sales statement containing a “material inaccuracy”4;

  2.  

    (2)     within six months of discovering that inaccuracy, HMRC have issued him with a written warning (the first warning) identifying that statement and stating that future inaccuracies might result in the service of a notice5;

  3.  

    (3)     the person submits a second EC sales statement containing a material inaccuracy, and the “submission date” is within a period of two years beginning with the day after the first warning was issued6;

  4.  

    (4)     within six months of discovering the second inaccuracy, HMRC have served on

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