Section 62 — Value Added Tax Act 1994: Incorrect certificates as to zero-rating etc.

Incorrect certificates as to zero-rating etc. 62 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.