SolvedFHDDS52110 | Penalties, sanctions and offences: penalties – policy: Penalties for breaches of FHDDS obligations
From HM Revenue & Customs · VAT Fulfilment House Due Diligence Scheme
In addition to the penalty for late registration, Regulations 14 to 18 of the Fulfilment Businesses Regulations 2018 also provide for penalties for the following:
| Failure to meet any condition or restriction imposed by HMRC in a particular case as a condition of approval under the scheme. | £500 for each contravention. |
|---|---|
| Failing to notify HMRC of non-compliant customers, where the registered business knows or has reasonable grounds to suspect that the customer is not meeting its UK VAT or customs duty obligations. | £3,000 for each contravention. |
| Continuing to deal with such a customer, having held the knowledge or reasonable grounds of suspicion (as above) for more than 60 days. | £3,000 for each contravention. |
| Commencing to supply services to any customer where the registered business knows or has reasonable grounds to suspect that the customer is not meeting its UK VAT or customs duty obligations. | £3,000 for each contravention. |
| Failing to issue specified notices to customers, informing them of their UK VAT and customs duty obligations, within the specified timescales. | £500 for each contravention. |
| Failing to maintain records as required under Regulation 10 of the Fulfilment Businesses Regulations 2018. | £500 for each contravention. |
| Failing to verify customers’ VAT registration numbers, or failure to notify HMRC of any failed validations, within the specified timescales and frequency. | £500 for each contravention. |
| Failing to notify HMRC of a change to registered details or that the registered person has ceased to carry on an imported goods fulfilment business. | £500 for each contravention. |