VDSOG300 - Exclusions from default surcharge
In law anyone who is registered for VAT is in default if they file and/or pay their return late. However, in practice the following taxpayers are automatically excluded from surcharge processing
- taxpayers filing first period returns (except those transferred as ‘going concerns’ by the VAT 68 procedure)
- taxpayers classified as ‘repayment’
- taxpayers who have or are in the process of deregistering (such as, where the deregistration indicator is set against the taxpayer’s VAT mainframe account)
- taxpayers who are insolvent
- Local Authorities (section 20 bodies)
- missing taxpayers (those with review code 309 set against their VAT mainframe account).