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HMRC internal manual

VAT Fraud

HM Revenue & Customs
, see all updates

What to consider prior to determining whether to use an intervention: matters to consider when looking at particular types of taxable person or activity: creative industries tax reliefs: interventions to consider: refusal of zero rating using Mecsek

Zero rating can be denied for an intra-Community supply of goods where the taxable person knew or should have known that his transaction was part of a tax fraud committed by the customer, and that he had not taken every reasonable step within his power to prevent his own participation in that fraud. This is known as ‘the Mecsek principle’.

Further guidance can be found at VATF43230.