CH72780 - Penalties for Failure to Notify: Calculating the penalty: Potential Lost Revenue: VAT on acquisition of excise goods or a new means of transport by non-taxable persons
A person who is not a taxable person must pay VAT on
- goods that are subject to excise duty, or
- a new means of transport
that are acquired in the UK from another EU member state. A non-taxable person is an individual who is neither registered nor required to be registered for VAT.
If the person fails to notify us that they have made such an acquisition, the potential lost revenue (PLR) is the amount of VAT on the acquisition to which the failure relates.
Example
Gwen buys a new motor car in another EU member state while on holiday in August 2010. »Ê¹ÚÌåÓýapp motor car is covered by the definition of a new means of transport in VATA 1994. »Ê¹ÚÌåÓýapp value of the VAT due in relation to the acquisition is £3,500.
She brings the motor car into the UK in August 2010 but does not declare it to HMRC. We discover the acquisition in October 2010.
Gwen is liable to a penalty for failure to notify the acquisition of a new means of transport on time. »Ê¹ÚÌåÓýapp PLR is £3,500.