Which of the following could be a consequence of failing to comply with VAT regulations?

Failing to comply with VAT regulations can lead to fines and potential criminal charges as a serious consequence. Tax authorities enforce compliance through various measures, and non-compliance can result in financial penalties designed to deter such behavior. In more severe cases, particularly where there is evidence of deliberate evasion or fraud, individuals or businesses could face criminal charges, which can lead to prosecution. This emphasizes the importance of adhering to VAT laws and regulations to avoid serious legal repercussions and protect the integrity of one's business operations.

The other options suggest outcomes that are unlikely or not typically associated with non-compliance. Automatic approval of subsequent VAT returns is not a consequence of failing to comply, as non-compliance raises scrutiny rather than easing the approval process. Similarly, increased opportunities for tax benefits would not stem from failing to meet VAT obligations and could, in fact, create additional hurdles. Lastly, while deregistration from the VAT system can occur in specific circumstances, it is not an immediate consequence of non-compliance, nor is it a standard response from tax authorities.