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HMRC internal manual

VAT Fraud

What is VAT fraud?: examples of different types of VAT fraud: suppression

This is the simplest form of VAT fraud. The taxable person will suppress his sales, as well as usually his corresponding purchases, and declare lower VAT figures in both his internal records and on the VAT return. He might also decide to suppress all of his taxable income in order to avoid becoming registered for VAT (VATF23100).

Any business can undertake suppression: cash traders, businesses acquiring goods, service traders etc.

Some examples of guidance on suppression can be found in:

  • VSME55000 of the Small and Medium Enterprises Assurance Manual;
  • VATNMT6200 of the New Means of Transport Guidance; and
  • EXGG11725 of the Excise Gambling Guidance (regarding suppression of bar and restaurant takings).

If you discover a taxable person who is suppressing his income and/or expenditure you should contact the VAT Fraud Team.