Value Added Tax Act 1994 section 77ZA

Late payment interest on amounts of VAT due

Section 77ZA explains how late payment interest charged on overdue VAT is treated for enforcement purposes.

  • When VAT is not paid on time, HMRC charges late payment interest under section 101 of the Finance Act 2009.
  • This interest applies both to VAT itself and to any amount that is enforceable as if it were VAT.
  • The late payment interest can be enforced by HMRC using the same powers available for collecting unpaid VAT.
  • The person liable for the underlying VAT is also the person liable for the late payment interest charged on it.

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