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HMRC internal manual

VAT Fraud

HM Revenue & Customs
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What to consider prior to determining whether to use an intervention: matters to consider when looking at particular types of taxable person or activity: conduit traders: introduction

This part of the guidance manual is aimed at assisting officers in tackling conduit traders, which are traders which facilitate MTIC fraud in the EU (VATF23500), where the tax loss is in other Member States (‘OMS’).

The guidance sets out:

  • what a conduit trader is (VATF36320),
  • the types of conduit trading there is in the UK (VATF36330), and
  • possible civil interventions officers can use (VATF36340).

Note: Officers are strongly advised to consult the VAT Fraud team and/or the SI Technical Team at an early stage when considering possible interventions in these cases. You must obtain approval from the VAT Fraud Team before making any decisions involving the Kittel principle (VATF50000) or de-registration on grounds of abuse (VATF44500).