Penalties for VAT and Excise Wrongdoing: Calculating the penalty: Introduction
The penalty for a VAT or excise wrongdoing, see CH91200, is based on the amount of
- VAT or the amount representing VAT shown on the invoice, or
- excise duty unpaid because of the wrongdoing.
This tax or duty is the Potential Lost Revenue or PLR.
Where the wrongdoing is the supply of a product knowing that it will be misused, see CH91450, the maximum penalty percentage is 100% of the PLR.
For all other VAT and Excise wrongdoings appropriate percentage depends on whether the wrongdoing was
- deliberate and concealed, see CH93100
- deliberate but not concealed, see CH93200, or
- non-deliberate, see CH93300.
The maximum penalty percentage is
|Type of wrongdoing||Maximum penalty percentage|
|Deliberate and concealed||100 % of PLR|
|Deliberate||70% of PLR|
|Non-deliberate||30% of PLR|