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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: Blocking traders

In the course of the supply chain verification you might trace the transaction to a taxable person who refuses to provide its business records for inspection or has gone missing (VATF53205). In such instances you should read MTOG5000 of the Missing Trader Intra-Community Fraud Specialist Investigations Operational Guidance. You should also consider whether to apply an intervention, such as denying input tax because of insufficient evidence to support the claim (VATF42400), and/or a penalty (VATF44300).