VCP11131 - Definition of Regulatory Penalties: What are Regulatory Penalties

Regulatory penalties are a sanction against non-compliant traders who breach theregulatory requirements of VAT law.

They provide a response to a wide range of breaches including the way in which the tax should be
 

• accounted for and paid, and
• assurance matters, such as requirements to produce records when asked for by an authorised officer of HMRC.

The penalties are covered by Section 69 and may be grouped into three types
 

• Section 69(1)(a) to (g), general regulatory penalties, see VCP11132.
• Sections 69(2), the penalty for failing to preserve records, see VCP11133.
• Section 69 (1)(d) and Section 69 (5)/(6) the penalty for late payment and/or late furnishing of VAT returns, see VCP11134.