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A person (P) is liable to a penalty if P makes an unauthorised issue of an invoice showing VAT¹. P makes such an issue if²:

1. Ìý

   •ÌýÌýÌýÌý P is an unauthorised person, ie P is not:

2. Ìý
   1. Ìý

      –ÌýÌýÌýÌý registered for VAT

   2. Ìý

      –ÌýÌýÌýÌý a member of a VAT group

   3. Ìý

      –ÌýÌýÌýÌý treated as a taxable person under VATA 1994, s 46(4) (see V2.102, V2.109, V2.113)

   4. Ìý

      –ÌýÌýÌýÌý authorised to issue an invoice under the provisions relating to the satisfaction of a debt (see V5.142), or

   5. Ìý

      –ÌýÌýÌýÌý a person acting on behalf of the Crown

3. Ìý

   and

4. Ìý

   •ÌýÌýÌýÌý P issues an invoice showing an amount as being VAT or as including an amount attributable to VAT. This includes invoices purportedly issued under the flat-rate farmers' scheme

Where the penalty is payable by a company and the action giving rise to the penalty was attributable to an officer of the company, HMRC may pursue that