VPDS197400 | Vaping Products Duty and Vaping Duty Stamps: Penalties, offences and sanctions: Behavioural penalties: Failure to make a return

Where a trader fails to make a return, they shall be liable to penalty points which may lead to penalties being charged under schedule 24, Finance Act 2021.

As the returns are required on a monthly basis, the maximum number of penalty points that can be accrued is 5.

After reaching the maximum number of points, each late submission will attract a fixed penalty of £200 until the trader meets all their submission obligations by the relevant deadline for a set period (known as ‘the penalty period’). Once this has happened and the trader has supplied all outstanding returns for the preceding 2 years, then the points total resets to zero.

The penalty points will have a lifespan of 2 years, after which they will expire. If a trader acquires points but never reaches the maximum, the points will expire 2 years after the date on which they were acquired.

These penalties are a relevant decision and can be litigated against.

You should note that this penalty process is automated, and you do not need notify the trader, this will be done centrally.