VCP10961 - Reviews and appeals: Reviews of penalties for failure to submit EC sales statements

If the customer accepts our offer to review the penalty, all the circumstances surrounding the recording of the default should be considered

You should make sure that

• The Penalty Liability Notice, see VCP10944, has been correctly issued and was in force at the time of the default being reviewed.
• A default has occurred.
• The penalty calculation is correct.
• There is no reason for the penalty to be withdrawn.

Generally the trader should be asked to provide full details of why they disagree with the penalty.

Review officers should follow the guidance in the Appeals Reviews and Tribunals Guidance (ARTG).

If the trader provides information that has the effect of reducing the number of days to which a penalty may be applied, you should amend the penalty. You can do this by inputting form VAT 651 Civil Penalty Amendment.

You can also use the VAT 651 to remove a penalty imposed if a reasonable excuse is accepted.