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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: matters to consider when looking at particular types of taxable person or activity: conduit traders: what is a 'conduit trader'?

A conduit trader is a UK trader that partakes in a transaction that is connected with the fraudulent evasion of VAT in another Member State.

The following types of traders might be acting as conduit traders:

  • acquirers,
  • buffers,
  • exporters,
  • traders making supplies between OMSs, and
  • box consolidators (VATF36200).

Many of the hallmarks of normal MTIC transactions (VATF23500) are often present in transactions carried out by conduit traders. This type of trade will often appear to be contrived and may look substantially different to normal arms length commercial transactions (VATF60000).