Value Added Tax Act 1994

62 Incorrect certificates as to zero-rating etc

(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 Group 5 or 6 of Schedule 8 or Group 1 of Schedule 9; or

(ii) gave to the supplier a certificate that the supplies fell within Group 7 of Schedule 5 to the 1983 Act for the purposes of paragraph 13(4)(f) of Schedule 3 to the [1989 c. 26.] Finance Act 1989; and

(b) the certificate is incorrect,

the person giving or who gave the certificate shall be liable to a penalty.

(2) The amount of the penalty shall be equal to the difference between the amount of the VAT which would have been chargeable on the supply or supplies if the certificate had been correct and the amount of VAT actually so chargeable.

(3) The giving of a certificate shall not give rise to a penalty under this section if the person who gave it satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for his having given it.

(4) Where by reason of giving 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.