The following regulations have been issued to activate the new VAT late-filing and late-payment penalties and interest regime with effect from 1 January 2023:
Finance Act 2021 (Value Added Tax) (Penalties) (Appointed Day) Regulations, SI 2022/1278: bringing the new penalties for late filing and late payment (set out in FA 2021 Schs 24 and 26) into force for accounting periods beginning on or after 1 January 2023.
Finance Act 2009, Finance (No 3) Act 2010 and Finance Act 2021 (Value Added Tax) (Interest) (Appointed Days) Regulations, SI 2022/1277: applying FA 2009 ss 101 and 102 for the purposes of VAT from 1 January 2023. Those sections provide for late-payment interest on sums due to HMRC and repayment interest on sums due to be paid by HMRC. Regulation 3 is worth noting for the way it sets out specific commencement provisions to make sure the Regulations apply correctly for the various different penalties which only apply to VAT (for example, for incorrect zero-rating certificates or irregularities with invoices).
Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order, SI 2022/1298: disapplying the existing interest provisions (to make sure only the new rules apply). One key point to note is the disapplication of VATA 1994 s 79, meaning that the repayment supplement will no longer be available, having been replaced by the harmonised repayment interest regime. These regulations make the necessary changes to VATA 1994 and other existing legislation to ensure the new regime works as intended.
The following regulations have been issued to activate the new VAT late-filing and late-payment penalties and interest regime with effect from 1 January 2023:
Finance Act 2021 (Value Added Tax) (Penalties) (Appointed Day) Regulations, SI 2022/1278: bringing the new penalties for late filing and late payment (set out in FA 2021 Schs 24 and 26) into force for accounting periods beginning on or after 1 January 2023.
Finance Act 2009, Finance (No 3) Act 2010 and Finance Act 2021 (Value Added Tax) (Interest) (Appointed Days) Regulations, SI 2022/1277: applying FA 2009 ss 101 and 102 for the purposes of VAT from 1 January 2023. Those sections provide for late-payment interest on sums due to HMRC and repayment interest on sums due to be paid by HMRC. Regulation 3 is worth noting for the way it sets out specific commencement provisions to make sure the Regulations apply correctly for the various different penalties which only apply to VAT (for example, for incorrect zero-rating certificates or irregularities with invoices).
Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order, SI 2022/1298: disapplying the existing interest provisions (to make sure only the new rules apply). One key point to note is the disapplication of VATA 1994 s 79, meaning that the repayment supplement will no longer be available, having been replaced by the harmonised repayment interest regime. These regulations make the necessary changes to VATA 1994 and other existing legislation to ensure the new regime works as intended.
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