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HMRC internal manual

VAT Fraud

What to consider prior to determining whether to use an intervention: applying VAT basics: other basic matters to consider: general basics to consider

Once you have established that there has been a supply for VAT purposes (VATF34200) you should consider the following:

  • Was the liability of the supply correct? (V1-07 provides guidance on determining whether the supply falls within the zero rate or exemptions.)
  • If the supply was exempt from VAT, was the input tax reclaimable? (See the Partial Exemption guidance manual.)
  • Was the payment a disbursement? (Notice 700, sections 22, 23, 24 and 25 refers.)
  • Should the taxable person have been registered for VAT in another Member State? (See VATSM3700 of the Single Market guidance manual.)
  • Are there particular place of supply issues that apply to the goods or services being provided? (See the VAT Place of Supply of Goods and VAT Place of Supply of Services guidance manuals.)
  • Are the invoices being used to evidence a claim for input tax pro-forma invoices? (Notice 700, section 17.3 refers.)

The above list is not exhaustive.