This case showed that in order to avoid a default surcharge under the ‘reasonable excuse’ argument, the taxpayer must prove that the actions taken were reasonable for a responsible business conscious of and intending to comply with its VAT accounting obligations.
It is important to note that the default surcharge regime applied because the period in question was dated in 2021. From 1 January 2023 a new penalty system applies for both late VAT returns and payments.
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