Value Added Tax Act 1994 section 71

Construction of sections 59 to 70

Section 71 defines what does and does not count as a "reasonable excuse" for the purposes of the VAT default surcharge and penalty provisions, and clarifies the meaning of input tax credit references in those sections.

• Not having enough money to pay VAT when it is due is never accepted as a reasonable excuse for defaults or penalties under sections 59 to 70.
• Relying on someone else to carry out a task — such as an agent, bookkeeper, or adviser — is not a reasonable excuse, even if that person was slow or made mistakes.
• Any reference to "credit for input tax" in sections 59 to 69 also covers any other sum claimed as a deduction from VAT due on a return for that accounting period.
• These rules apply across all the main VAT default surcharge, penalty, and enforcement provisions in sections 59 to 70 of the Act.