Value Added Tax Act 1994 Schedule 9ZF paragraph 9

Finance Act 2007

Paragraph 9 extends the penalty regime for errors in tax documents (under Schedule 24 to the Finance Act 2007) so that it also covers returns filed under VAT special accounting schemes for distance selling.

• The existing penalty rules for errors in taxpayer documents are extended to cover returns submitted under VAT special accounting schemes.
• A "return under a special accounting scheme" includes OSS scheme returns and relevant non-UK returns under Schedule 9ZD, and relevant special scheme returns under Schedule 9ZE, but only insofar as they relate to supplies of goods treated as made in the United Kingdom.
• Where a special accounting scheme return must be submitted to a foreign tax authority rather than directly to HMRC, the return is treated as given to HMRC at the point it is submitted to that foreign authority.
• This ensures that businesses using EU or non-UK one-stop-shop arrangements to account for UK VAT on distance sales of goods face the same penalty consequences for errors as businesses filing standard UK VAT returns.