Value Added Tax Act 1994 section 77C

Joint and several liability under section 77B or 77BA: assessments

Section 77C sets out how HMRC may assess the amount of VAT due from an online marketplace operator who is jointly and severally liable under section 77B or 77BA, including the time limits that apply to such assessments.

• HMRC may assess the VAT due from an online marketplace operator to the best of their judgement and notify the operator of the amount assessed.
• An assessment for any given month must generally be made within two years of the end of that month, or within one year of HMRC obtaining sufficient evidence to justify the assessment, whichever is later.
• Where new evidence comes to light after an initial assessment has been made, HMRC may make a further assessment within one year of learning of that evidence, but no assessment or further assessment may be made more than four years after the end of the month in question.
• Once an assessment has been notified to the operator, the amount is treated as VAT due and is recoverable accordingly, unless the assessment is subsequently withdrawn or reduced, and the operator has a right of appeal.