Penalties — miscellaneous other VAT penalties | Tax Guidance

Penalties — miscellaneous other VAT penalties

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note examines several important VAT-specific penalties, namely penalties for:

•
failure to keep VAT records and digital records
•
failure to notify changes of VAT registration details
•
failure by an online marketplace to display VAT registration number
•
failure to file a VAT return using functional compatible software

Failure to keep VAT records and digital records

If a business fails to keep VAT records as required by HMRC for at least six years (unless a shorter retention period has been agreed in writing with HMRC), it will potentially be subject to a penalty. The VAT record keeping requirements guidance note sets out more information on the requirements themselves.

A penalty of £500 can be charged for this failure.

Alternatively HMRC may seek to apply a daily penalty for general regulatory breaches. The amount of such a penalty is the greater of:

•
an amount equal to the ‘prescribed daily rate’ multiplied

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