Value Added Tax Act 1994 section 31

Assessment in cases of acquisitions of certain goods by non-taxable persons

Section 31 of Schedule 9ZA deals with HMRC's power to assess VAT on goods subject to excise duty or new means of transport acquired in Northern Ireland from an EU member state by persons who are not VAT-registered.

• HMRC may assess VAT to the best of their judgement where a non-taxable person acquires excise goods or a new means of transport in Northern Ireland from an EU member state and has failed to notify, has provided inaccurate or incomplete details, or has not supplied information needed to verify the notification.
• The assessment must be made within the time limits in section 77, and no later than 2 years after the required notification was given or one year after HMRC obtain sufficient evidence to justify the assessment, whichever is later.
• Once assessed and notified, the amount is treated as VAT due and is recoverable unless the assessment is withdrawn or reduced, subject to the taxpayer's right of appeal.
• Notification to a personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or other person acting in a representative capacity counts as notification to the person who made the acquisition.

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