VCP11442 - New Means of Transport: Discretion, reasonable excuse and mitigation: Reasonable excuse

Please note: the Section 67 VATA 1994 penalty has been replaced by the Failure to Notify penalty introduced by Schedule 41 Finance Act 2008. »Ê¹ÚÌåÓýapp Failure to Notify penalty applies to obligations to notify the acquisition of a new means of transport on or after 01/04/2010. »Ê¹ÚÌåÓýapp penalty under Section 67 VATA 1994 continues to apply where the obligation to notify the acquisition of a new means of transport occurs before 01/04/2010.

Please see the Compliance Handbook CH70000 for more information about the Failure to Notify penalty.

No liability to a penalty exists if a person can satisfy us that there is a reasonable excuse for either

  • the failure to notify, or
  • the failure to pay.

If they can show that they have acted in what a reasonable person would consider a reasonable way, a penalty will not be imposed or will be withdrawn.

Section 71 of the Value Added Tax Act 1994 does not allow lack of funds or reliance upon a third party to be used as reasonable excuse.