Commentary

V5.347 Failure to notify/belated notification of liability to registration

Part V5 Compliance, enforcement and appeals

V5.347 Failure to notify/belated notification of liability to registration

V5.347 Failure to notify/belated notification of liability to registration

This paragraph deals with the penalty for the failure to notify, or the belated notification of, a liability to register for VAT.

Provisions applicable until 31 March 2010

The provisions relating to failure to notify, etc., were changed with effect from 1 April 2010. However, the pre-existing provisions still apply where the obligation to notify arose prior to 1 April 2010. Given that HMRC may assess tax and penalties for 20 years where a deliberate failure gives rise to a VAT loss, a description of the earlier provisions has been retained.

Liability to a penalty

(i) Person making taxable supplies

Where a person making taxable supplies fails to notify his liability to registration1, he is liable to a penalty2. HMRC are notified of a person's liability to registration when the requisite form(s) are received at one of their offices3. It follows that a person cannot be liable to a penalty under this provision if the evidence demonstrates, on the balance of probabilities, that the requisite form(s) were received by HMRC on or before the due date for notification4.

A person's obligation to notify liability to registration is a continuing one. Subject to the exceptions stated, therefore, he is liable to a penalty under this provision if he is in default of this obligation at any time on or after 25 July 1985 (ie the date when FA 1985 received Royal Assent). Thus, a person is prima facie liable to a penalty if he was required to

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