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