VATF41000 - Basic interventions: Introduction
Note: This manual is currently under review following Brexit. Some content may be withdrawn or revised during this process. If there is anything within this manual you use regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know. In the meantime, you should check the other guidance available on GOV.UK from HMRC.
You should have:
- carefully and fully documented the way the market in which the taxable person operates or is about to operate and his business model (VATF32100);
- carefully and fully documented how the taxable person carries on his business (VATF32200);
- determined whether there has been a supply for VAT purposes (VATF34000); and
- checked the credibility of the transactions and the taxable person (VATF33000).
You now need to thoroughly examine the documents used to evidence the transaction and the circumstances surrounding the transaction (VATF60000). Where you consider there are inadequacies or fraud there are various interventions open to you. These interventions are discussed in the following sections:
- input tax interventions (VATF42000);
- output tax interventions (VATF43000); and
- other interventions (VATF44000).
There is also a section that discusses other matters to consider when determining whether to use a civil intervention (VATF45000).
Finally, if you are looking at taxable persons involved in provision of labour, box breaking or box consolidation, the creative industries or are acting as conduit traders, you should read VATF36000.