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HMRC internal manual

VAT Fraud

HM Revenue & Customs
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The Kittel principle intervention: Kittel in more detail: Problems determining where the fraudulent evasion of VAT lies: Missing traders

In the course of the supply chain (extended) verification (VATF33500) exercise you might trace the transaction to a taxable person that has gone missing and find that you have no way of obtaining its business records. The first thing you should consider is whether the missing trader has declared its VAT liabilities by submitting a fully completed and correct VAT return and/or, just as importantly, paid its net VAT liability. If it has not submitted a VAT return and/or has not paid its net VAT liability you should see VATF53105.

If the missing trader has fully accounted for its supplies and has correctly submitted VAT returns (i.e. it is not a defaulter), but it has not been possible to trace the transaction beyond that point, you should see MTOG5000 of the Missing Trader Intra-Community Fraud Specialist Investigations Operational Guidance.