Value Added Tax Act 1994 section 78

Finance Act 2008

Section 78 extends HMRC's existing information, inspection and penalty powers under the Finance Act 2008 so that they also cover the acquisition of goods from EU member states under the Northern Ireland protocol arrangements.

• HMRC's power to inspect business premises is extended to cover premises used in connection with taxable acquisitions of goods from EU member states, including any goods or documents on those premises relating to such acquisitions.
• HMRC's power to request information from third parties is extended to cover the acquisition of goods from a member state, with cross-references updated to include the relevant Schedule 9ZA provisions.
• Penalties for failure to notify apply to obligations to notify liability to register for VAT in respect of taxable acquisitions, to notify changes affecting exemption from registration, and to notify acquisitions of goods from a member state under regulations.
• When calculating the potential lost revenue for penalty purposes, any VAT already paid in the EU member state on the supply in pursuance of which the goods were acquired, or on a supply taxable under Schedule 9ZB paragraph 29, is deducted from the amount.