Value Added Tax Act 1994 section 62

Incorrect certificates as to zero-rating etc.

Section 62 deals with the penalties that apply when a person provides an incorrect certificate to a supplier claiming that a supply qualifies for zero-rating, reduced rating, exemption, or fiscal warehousing relief.

• A person who gives an incorrect certificate to a supplier stating that a supply falls within certain zero-rated, reduced-rated, or exempt categories — or qualifies for fiscal warehousing relief — is liable to a financial penalty.
• A separate penalty also applies where an incorrect certificate is given in respect of a zero-rated supply of a motor vehicle under Group 12 of Schedule 8.
• The penalty amount equals the difference between the VAT that would have been due had the certificate been correct and the VAT that is actually chargeable on the supply.
• No penalty arises if the person can demonstrate a reasonable excuse for giving the incorrect certificate, or if they have already been convicted of a criminal offence in connection with the same certificate.