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 paragraph 1 of Schedule A1, Group 5 or 6 of Schedule 8 or Group 1 of Schedule 9, or

ii

gives to the supplier a certificate for the purposes of section 18B(2)(d) or 18C(1)(c),

and

b

the certificate is incorrect,

the person giving the certificate shall be liable to a penalty.

1A

Subject to subsections (3) and (4) below, where—

a

a person who makes, or is to make, an acquisition of goods from another member State prepares a certificate for the purposes of section 18B(1)(d), and

b

the certificate is incorrect,

the person preparing the certificate shall be liable to a penalty.

2

The amount of the penalty shall be equal to—

a

in a case where the penalty is imposed by virtue of subsection (1) above, the difference between—

i

the amount of the VAT which would have been chargeable on the supply or supplies if the certificate had been correct; and

ii

the amount of VAT actually chargeable;

b

in a case where it is imposed by virtue of subsection (1A) above, the amount of VAT actually chargeable on the acquisition.