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Value Added Tax Act 1994

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Change 1

What to do with it
As published

62 Incorrect certificates as to zero-rating etc.

(1) Subject to subsections (3) and (4) below, where— (a) a person to whom one or more supplies are, or are to be, made— (i) gives to the supplier a certificate that the supply or supplies fall, or will fall, wholly or partly within any of the Groups of Schedule 7A, Group 5 or 6 of Schedule 8 or Group 1 of Schedule 9, or (ii) gives to the supplier a certificate for the purposes of section 18B(2)(d) or 18C(1)(c), and (b) the certificate is incorrect, the person giving the certificate shall be liable to a penalty. (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1B) Where— (a) a person gives a certificate for the purposes of Note (5R) to Group 12 of Schedule 8 with respect to a supply of a motor vehicle, and (b) the certificate is incorrect, the person giving the certificate is to be liable to a penalty. (2) The amount of the penalty shall be equal to— (a) in a case where the penalty is imposed by virtue of subsection (1) above, the difference between— (i) the amount of the VAT which would have been chargeable on the supply or supplies if the certificate had been correct; and (ii) the amount of VAT actually chargeable; (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) in a case where it is imposed by virtue of subsection (1B), the difference between— (i) the amount of the VAT which would have been chargeable on the supply if the certificate had been correct, and (ii) the amount of VAT actually chargeable. (3) The giving or preparing of a certificate shall not give rise to a penalty under this section if the person who gave or prepared it satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for his having given or prepared it. (4) Where by reason of giving or preparing a certificate a person is convicted of an offence (whether under this Act or otherwise), the giving of the certificate shall not also give rise to a penalty under this section.

Your change, as a redline

62 Incorrect certificates as to zero-rating etc.

(1) Subject to subsections (3) and (4) below, where— (a) a person to whom one or more supplies are, or are to be, made— (i) gives to the supplier a certificate that the supply or supplies fall, or will fall, wholly or partly within any of the Groups of Schedule 7A, Group 5 or 6 of Schedule 8 or Group 1 of Schedule 9, or (ii) gives to the supplier a certificate for the purposes of section 18B(2)(d) or 18C(1)(c), and (b) the certificate is incorrect, the person giving the certificate shall be liable to a penalty. (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1B) Where— (a) a person gives a certificate for the purposes of Note (5R) to Group 12 of Schedule 8 with respect to a supply of a motor vehicle, and (b) the certificate is incorrect, the person giving the certificate is to be liable to a penalty. (2) The amount of the penalty shall be equal to— (a) in a case where the penalty is imposed by virtue of subsection (1) above, the difference between— (i) the amount of the VAT which would have been chargeable on the supply or supplies if the certificate had been correct; and (ii) the amount of VAT actually chargeable; (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) in a case where it is imposed by virtue of subsection (1B), the difference between— (i) the amount of the VAT which would have been chargeable on the supply if the certificate had been correct, and (ii) the amount of VAT actually chargeable. (3) The giving or preparing of a certificate shall not give rise to a penalty under this section if the person who gave or prepared it satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for his having given or prepared it. (4) Where by reason of giving or preparing a certificate a person is convicted of an offence (whether under this Act or otherwise), the giving of the certificate shall not also give rise to a penalty under this section.

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