VCP10912 | Why a penalty arises: The law supporting the penalty

VAT Act 1994 Schedule 11 paragraph (2) (3) and the VAT General Regulations 1995 Regulation22, require UK VAT registered traders who make supplies of goods to registered traders inother EC Member States to submit EC Sales Statements.

The VAT Act 1994 section 66 gives HMRC the power to impose a penalty on traders who failto submit their EC Sales lists on time.