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HMRC internal manual

VAT Fraud

From
HM Revenue & Customs
Updated
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What is VAT fraud?: examples of different types of VAT fraud: smuggled goods

Goods smuggled into the UK from other EU Member States will normally follow the pattern set out in Missing Trader Intra-Community (MTIC) fraud (VATF23500), although not always as the goods might end up being diverted for sale into the UK’s shadow economy, although the taxable person will claim to have exported or dispatched them.

Taxable persons who smuggle goods into the UK from outside the EU will fail to pay import VAT and duties. Although they, too, might follow an MTIC type fraud, they also might end up being diverted for sale into the UK, although the taxable person will claim to have exported or dispatched them.

If you discover a taxable person who you suspect to have smuggled goods into the UK you should contact the VAT Fraud Team.