Where a person has failed to notify liability to be registered for VAT, the potential lost revenue (PLR) is the amount of VAT for which the person is liable for the period from

the date on which the person should have been registered, to

the day before

the person notified us of their liability to be registered, or

we otherwise became aware that the obligation should have been met.

Allowable deduction

(1)Where appropriate, the PLR is reduced by the amount of tax paid in another EU member state in relation to

an acquisition of goods from another member state, or

distance sales made to the UK.

Example

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