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HMRC internal manual

VAT Fraud

From
HM Revenue & Customs
Updated
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What to consider prior to determining whether to use an intervention: applying VAT basics: was the supply made in the course or furtherance of any business carried on or to be carried on by the taxable person?

The concept of business is central to the operation of the UK VAT system. It assists in determining both the scope of the tax under The VAT Act 1994, Section 4(1) and whether tax can be seen as input tax under The VAT Act 1994, Section 24(1). Thus both a taxable person’s liability to account for output tax and ability to recover tax as input tax are dependent upon whether HMRC sees their activities as business.

VBNB provides guidance on whether a supply is made in the course or furtherance of any business carried on or to be carried on by a taxable person.