VCP11043 - Calculation and notification of a penalty: Issuing a Penalty Liability Notice

If the trader submits another ESL which contains a further material inaccuracies within the period of two years beginning with the day after the warning letter is issued, see VCP11042, A Penalty Liability Notice should be served.

This notice states that any future inaccuracies will attract a penalty.

It is important that the Penalty Liability Notice is served within 6 months from discovery of the material inaccuracy in the second EC Sales List.

Exceptions to penalty liability

Voluntary DisclosureIf a trader voluntarily discloses full details of an inaccuracy contained in an EC Sales List (ESL), that inaccuracy should not be regarded as material and therefore not liable to a penalty.

Double jeopardyIf a person is convicted of an offence as a result of submitting a statement containing a material inaccuracy, the inaccuracy which the conviction relates to should not be regarded as material and therefore not liable to a penalty.