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Her Majesty's Revenue & Customs (HMRC) are responsible for applying the law in the case of VATand there is a great deal of information available on their web site. What we provide here is an outline of the important issues regarding the penallties that can be applied if VAT requirements are not met
Late Registration - you are required to register for VAT within 30 days of becoming aware that your business income will reach the threshold during the previous 12 months period so it is necessary to keep an eye on that threshold and when you think you are likely to exceed it, in the future as well as the past - register !!
Incomplete Records - you are responsible for maintaining all of the records associated with VAT ie your own invoices which must show all the information relating to your own VAT registration and any invoices or receipts relating to purchases that also must be in a form to show the registration details of your supplier. The penalties are generally determined by the degree to which your records are non-conforming. Make sure that all of your transactions are done as VAT traders and always insist on the receipts and invoices being correct
See also
VAT Accuracy
VAT Overseas
VAT Records
VAT Return
VAT Taxables
Comments and suggestions for improving this site are appreciated and should be addressed to administration
Last Update 08-Jan-2012
Date first published 18-Dec-2005