VATF35325 - What to consider prior to determining whether to use an intervention: making and issuing a Notice of Direction: applying the measure: the Notice of Direction (NoD): what is the effective date from which records should be kept?
The effective date for a direction needs to be inserted in the NoD letter (see VATF35321). This should normally be 14 days from the date of issue of the NoD, unless you are satisfied that a longer lead time is justified in the particular circumstances of the business concerned. The effective date will also be the date from which the 30 day penalty period will run (see VATF35500). The aim is to allow the taxable person a reasonable period of time to comply, whilst also not compromising the operational objective of exercising the power (i.e. to assist in identifying supplies on which the VAT chargeable might not be paid).