VCP11211 - Unauthorised issue penalty: Why a penalty arises: What is an Unauthorised Issue penalty

Please note: the S 67 VATA 1994 penalty has been replaced by the VAT and Excise Wrongdoing penalty introduced by Schedule 41 Finance Act 2008. The VAT and Excise Wrongdoing penalty applies where a person makes an unauthorised issue of an invoice on or after 01/04/2010. If an unauthorised invoice has been issued before 01/04/2010 the S 67 penalty will continue to apply.

Please see the Compliance Handbook CH90000 Penalties for more information about the VAT and Excise Wrongdoing penalty.

HMRC can impose a penalty on an individual, who issues one or more invoices showing an amount as being Value Added Tax (VAT) or an amount attributable to VAT, if HMRC determine the individual is an unauthorised person.

Note: For definitions of an unauthorised person, see VCP11230.

This penalty was introduced in 1985 as one of the Keith Committee recommendations. It replaced the criminal offence of

• the issue by an unauthorised person of an invoice charging VAT.

The following guidance explains the procedures involved that enable HMRC to impose a penalty for unauthorised issue of VAT invoices.

Note: This guidance is for HMRC staff only, to enable them to perform the task of imposing a penalty for unauthorised issue of one or more invoices showing an amount as being Value Added Tax (VAT) or an amount attributable to VAT.

There are no implications under the Human Rights Act for unauthorised issue penalties, see VCP10160.