Value Added Tax Act 1994 Schedule 9ZF paragraphs 10-12

Modifications to Finance Act 2009 provisions on late payment interest and penalty suspension

Schedule 9ZF paragraphs 10 to 12 modify certain provisions of the Finance Act 2009 so that late payment interest and penalty suspension rules also apply to UK VAT amounts payable through the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes.

• Late payment interest under section 101 of the Finance Act 2009 is extended to cover UK VAT payable under the OSS non-UK scheme and the IOSS special scheme.
• Amounts of UK VAT due under these schemes are treated as amounts payable to HMRC for late payment interest purposes.
• The penalty suspension rules in section 108 of the Finance Act 2009, which apply during deferred payment agreements, are extended to cover VAT assessed under the OSS and IOSS schemes.
• Definitions used in these modifications take their meaning from Schedule 9ZD (OSS scheme) and Schedule 9ZE (IOSS scheme) of the VAT Act 1994.