SCHEDULES

SCHEDULE 7VAT: zero-rating of adapted motor vehicles etc

Penalty

3

1

Section 62 of VATA 1994 (incorrect certificates as to zero-rating etc) is amended as follows.

2

After subsection (1A) insert—

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.

3

In subsection (2), at the end insert—

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.