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HMRC internal manual

VAT Fraud

Scope, purpose and ownership of this guidance

Scope of the guidance

Our books of guidance are the main reference material for people in the Department. All HM Revenue and Customs’ (HMRC) formal procedures and work systems are outlined in these books, which give managers and staff the Department’s rules and guidelines and general advice on interpreting them.

The guidance is aimed at HMRC staff only. It replaces the following:

  • Missing Trader Intra-Community Guide (MTIC).

Purpose of the guidance

This guidance:

  • looks at what VAT fraud is and provides you with some examples of the different types of VAT fraud you might encounter (VATF20000);
  • looks at what you should consider prior to determining whether to use an intervention (VATF30000);
  • explains what basic interventions you may be able to use instead of or along side the use of the Kittel principle (VATF40000);
  • provides an overview of the Kittel principle, explains it in more detail and when you should use it (VATF50000);
  • looks at indicators of contrivance (VATF60000);
  • explains the importance of due diligence / risk assessment (VATF70000);
  • explains the process you need to follow when making a submission to the VAT Fraud Team (VAT Directorate)(VATF80000); and
  • discusses the litigation process and the role of the VAT Fraud Team if the taxable person appeals (VATF90000).

Guidance ownership

This guidance is owned by the VAT Fraud Team (VATF12100). If you have any questions concerning its contents please contact the VAT Fraud Team.