Commentary

V5.158 Goods obtained by fraud—VAT relief for supplier

Part V5 Compliance, enforcement and appeals

V5.158 Goods obtained by fraud—VAT relief for supplier

V5.158 Goods obtained by fraud—VAT relief for supplier

There is authority for the proposition that no supply takes place when a customer obtains goods by deception and the sale is validly and promptly repudiated1. Consequently a trader may, with HMRC's consent following an application, adjust his VAT Account where (a) he has been defrauded of goods and the police are satisfied that a fraud has taken place, or the fraudster has been convicted2.

The application should be supported by:

  1.  

    •     evidence of the fraud. This should include:

  2.  
    1.  

      –     evidence that the trader has been victim of the fraud proved in

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