Commentary

V5.350 Unauthorised issue of VAT invoices

Part V5 Compliance, enforcement and appeals

V5.350 Unauthorised issue of VAT invoices

V5.350 Unauthorised issue of VAT invoices

Provisions applicable until 31 March 2010

The provisions relating to the unauthorised issue of VAT invoices 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.

An unauthorised person is liable to a penalty if he issues one or more invoices showing an amount as being tax or as including an amount attributable to tax1. An unauthorised person for this purpose is someone other than2

  1.  

    (1)     a registered taxable person;

  2.  

    (2)     a body corporate included in a group registration;

  3.  

    (3)     a person carrying on the business of a person who is dead, bankrupt or incapacitated, who has gone into receivership or liquidation, or who is the subject of an administration order;

  4.  

    (4)     a person selling goods under a power where goods are sold in satisfaction of a debt; or

  5.  

    (5)     a person acting on behalf of the Crown.

A person is also liable to a penalty if3

  1.  

    (1)     he issues one or more invoices for the purposes of any provision made under the farmer's flat-rate scheme4;

  2.  

    (2)     the invoice(s) show an amount as included in the consideration for any supply; and

  3.  

    (3)     either—

  4.  
    1.  

      (a)     the invoice(s) fail to comply with the requirements of any regulations made in relation to the

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