60-536 Penalty for improper issue of VAT invoice from April 2010
The ‘wrongdoing’ penalty in FA 2008, Sch. 41, para. 2 applies if an unauthorised invoice is issued after 31 March 2010.
The criteria for determining the penalty, and any mitigation, is the same as for the late notification penalty which is discussed at ¶60-481 (HMRC Compliance Handbook Manual; HMRC Brief 52/2009 (24 August 2009)).
Amount of penalty for improper issue of VAT invoice
The penalty for the improper issue of a VAT invoice is between 10 per cent and 100 per cent of the VAT shown on the invoice.
The penalty amount depends on whether the offence was committed deliberately and whether there were attempts to conceal the offence.