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HMRC internal manual

Specialist Investigations Operational Guidance

HM Revenue & Customs
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Introduction and organisation: SI organisation, aims and work areas: missing trader intra community (MTIC) teams

MTIC work involves the verification of VAT supply chains to root out missing traders. Chains stretch across the EU and information is exchanged through the Standing Committee for Administrative Coordination (SCAC). Teams also monitor the top 300 risky traders where fraud is suspected.

Teams may also be involved in:

  • Drinks project - looking at around a dozen drinks wholesalers and those making drawback claims - alcohol being diverted back to UK free of duty
  • POCA recovery - using proceeds of crime legislation to recover assets.

In its simplest form MTIC Fraud involves obtaining a VAT registration number in the UK for the purposes of purchasing goods free from VAT in another EU Member State, selling them on with VAT charged at the standard rate (at a VAT-inclusive selling price) in the UK and then going missing or defaulting without paying the VAT due to HMRC.

MTIC fraud is an organised criminal attack on the VAT system and is the largest single source of fraudulent VAT losses. There are two main variations of the fraud, Acquisition and Carousel.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) SI website