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Home / De-Voil /Part V5 Compliance, enforcement and appeals /Division V5.3 Penalties /Civil penalties relating to VAT / V5.330E Civil penalties relating to VAT fraud
Commentary

V5.330E Civil penalties relating to VAT fraud


Part V5 Compliance, enforcement and appeals

VAT fraud includes fraud relating to:

  1. Ìý

    •ÌýÌýÌýÌý not being registered for VAT

  2. Ìý

    •ÌýÌýÌýÌý suppression of the value of sales and/or purchases

  3. Ìý

    •ÌýÌýÌýÌý false invoicing

  4. Ìý

    •ÌýÌýÌýÌý manipulating output tax

  5. Ìý

    •ÌýÌýÌýÌý missing traders

  6. Ìý

    •ÌýÌýÌýÌý labour providers

  7. Ìý

    •ÌýÌýÌýÌý smuggled goods

VATF21000

The legislation1 refers to transactions connected with VAT fraud and sets out when a person is liable to a penalty.

Liability to penalty2

A person ('T') is liable to a penalty where3:

  1. Ìý

    (1)ÌýÌýÌýÌý T has entered into a transaction ('the transaction') involving the making of a supply by or to T, and

  2. Ìý

    (2)ÌýÌýÌýÌý all of the following conditions are met:

  3. Ìý
    1. Ìý

      (a)ÌýÌýÌýÌý Condition A: the transaction was connected with the fraudulent evasion of VAT by another person (whether occurring before or after T entered into the transaction)

    2. Ìý

      (b)ÌýÌýÌýÌý Condition B: T knew or should have known that the transaction was connected with the fraudulent evasion of VAT by another person

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