VCP10391 - Belated Notification Penalty: When Does A Penalty Arise: Introduction
Belated Notification Penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 of the Finance Act 2008. The Failure to Notify penalty applies to obligations to notify HMRC of a liability to be registered for VAT on or after 01/04/2010. The Belated Notification Penalty under Section 67 VATA 1994 continues to apply to obligations to notify a liability to be registered for VAT before 01/04/2010.
Please see the Compliance Handbook CH70000 for more details about the new failure to notify penalty.
A trader must notify HMRC within the statutory time limits of a liability to Value Added Tax (VAT).
Notification must be made within these time limits for
- a liability to be registered for VAT
- a material change in the nature of supplies made by the trader
- a material change or alteration in the proportion of the zero rated supplies for traders exempt from registration
- any acquisition supply which is not zero rated for traders exempt from registration.
If HMRC are not notified within these statutory time limits the trader will be liable for a belated notification penalty under the VAT Act 1994, Section 67(1) (as amended).
The notification requirements are based on the legal provisions at the time the trader is required to be registered.
For guidance on the notification requirements under the VAT Act 1994 and for the period between 21 March 1990 and the VAT Act 1994 refer to
- VCP10392 Exceeding turnover limits
- VCP10393 Transfer of going concern
- VCP10394 Trader exempt from registration
- VCP10395 Distance selling
- VCP10396 Acquisitions
- VCP10397 Relevant supplies
- VCP10398 Local Authorities
The notification requirements before 21 March 1990 are listed in V1-28 Registration.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)