VDSOG300 | Exclusions from default surcharge

In law anyone who is registered for VAT is in default if they file and/or pay their return late. However, in practice the following taxpayers are automatically excluded from surcharge processing

• taxpayers filing first period returns (except those transferred as ‘going concerns’ by the VAT 68 procedure)

• taxpayers classified as ‘repayment’

• taxpayers who have or are in the process of deregistering (such as, where the deregistration indicator is set against the taxpayer’s VAT mainframe account)

• taxpayers who are insolvent

• Local Authorities (section 20 bodies)

• missing taxpayers (those with review code 309 set against their VAT mainframe account).