HMRC targets supply chain VAT fraud

Company directors who commit VAT fraud or fail to demonstrate procedures to prevent VAT fraud in the supply chain are being targeted by HMRC with a trader monitoring campaign.

Veronica Donnelly VAT partner with Azets said: ‘There is a huge burden of responsibility now on directors to review assess check and police VAT and tax compliance in the supply chain with severe penalties for getting it wrong. The potential for getting it wrong is vast with ignorance of the width of the rules being a major issue.’

The Kittel principle which stems from Kittel v Belgian State (Case 439/04) [2008] STC 1537 and set in UK law in 2017 is being actively implemented by HMRC as the framework against which suspected VAT fraud is assessed.

Directors are responsible not only to ensure their business is compliant but also to ensure...