Value Added Tax Act 1994 section 67A

Breach of controlled goods agreement

Section 67A deals with the consequences when a person who owes VAT breaks a controlled goods agreement that was entered into with HMRC's enforcement agents.

• Where a person has entered into a controlled goods agreement under the Tribunals, Courts and Enforcement Act 2007 in connection with VAT debts, and then breaches that agreement, HMRC's enforcement agent may apply to the court for remedies.
• A controlled goods agreement is an arrangement where a debtor agrees not to remove or dispose of goods that have been identified as security for the VAT debt, in exchange for being allowed to retain possession of those goods.
• If the debtor breaches the agreement — for example, by selling, hiding, or removing the goods — the enforcement agent can seek a court order to seize and sell those goods to recover the outstanding VAT.
• This provision strengthens HMRC's ability to collect unpaid VAT by ensuring that debtors who fail to honour controlled goods agreements face enforceable legal consequences.

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