Which of the following is required when a business fails to meet VAT obligations?

When a business fails to meet VAT obligations, it is essential to notify HMRC (Her Majesty's Revenue and Customs) and rectify the situation. This process involves informing HMRC about the failure to comply with VAT regulations, which could include underpayment, incorrect reporting, or missing VAT returns. By doing so, a business demonstrates transparency and a willingness to correct its mistakes, which can mitigate penalties or interest charges that could accrue due to non-compliance.

Rectification involves taking the necessary steps to correct any discrepancies in VAT returns or payments. This may include reassessing previous VAT submissions, making any necessary adjustments, and paying any outstanding VAT amounts. Proactivity in addressing these issues is critical to maintaining compliance and avoiding further complications with tax authorities.

Other options do not represent appropriate or effective actions to take when facing VAT obligations. Immediate exports, solely consulting with legal advisors, or halting all business activities do not fulfill compliance requirements with HMRC. Instead, proper notification and rectification are necessary actions that align with good tax practices and compliance under VAT legislation.