VAT is a self-assessed tax in the sense that VAT registered persons must submit VAT returns and, at the same time, pay any VAT that they owe. In some situations, such as when a person fails to submit a return or submits an incorrect return, this system breaks down. HMRC has the power to collect tax in these circumstances by sending the person an assessment for the outstanding VAT.

Unless the assessment is Appealed, withdrawn or reduced, VAT that has been assessed to a person is recoverable in the same way as any other amount of VAT due.

This Practice Note covers HMRC’s powers to make assessments, and the procedures and time limits it must comply with. For detail on how to appeal an assessment, see Practice Note: Appealing an HMRC decision.

This Practice Note includes references to EU case law. The UK ceased to be an EU Member State on 31 January 2020. On this date, the UK entered an Implementation period (IP), during which it continued to be treated as a Member State for many purposes, and remained