What to consider prior to determining whether to use an intervention: testing credibility: supply chain (extended) verification
Where deemed appropriate you should seek to verify the chain of transactions. This is done by tracing the goods or services:
- back down the supply chain to the manufacturer, importer or acquirer, and
- forward up the chain to the final end user, exporter or dispatcher.
When verifying a chain of transactions, you should keep in mind that the aim is to establish the facts and the true nature of the relevant transactions. It is only when this has been established that the validity of the claim can be tested and a decision made on what course of action to take (VATF40000).
Further guidance on supply chain (extended) verification can be found MTOG3900 of the Missing Trader Intra-Community Fraud Specialist Investigations Operational Guidance.(This content has been withheld because of exemptions in the Freedom of Information Act 2000) If you require further assistance please contact the VAT Fraud Team.