Value Added Tax Act 1994 section 32

Assessment of amounts due

Section 32 of Schedule 9ZA extends the existing time limits and supplementary assessment rules in section 77 of the VAT Act so that they also apply to assessments made under the second-hand goods margin scheme.

• The time limit rules that already govern VAT assessments under sections 73 to 76 are extended to cover assessments made under paragraph 31 of Schedule 9ZA (the margin scheme assessment power).
• References to "importation" in the time limit provisions are broadened to include "acquisition", reflecting goods acquired from outside the UK under the margin scheme.
• The provisions allowing HMRC to make supplementary assessments where earlier assessments prove insufficient are extended to cover specific margin scheme obligations, including penalties and credit note adjustments.
• The rule restricting HMRC from raising an assessment more than three years after evidence of facts sufficient to justify the assessment came to their knowledge is extended to margin scheme assessments.