VATF23200 - What is VAT fraud?: examples of different types of VAT fraud: suppression
This is the simplest form of VAT fraud. The taxable person will suppress his sales, as well as usually his corresponding purchases, and declare lower VAT figures in both his internal records and on the VAT return. He might also decide to suppress all of his taxable income in order to avoid becoming registered for VAT (VATF23100).
Any business can undertake suppression: cash traders, businesses acquiring goods, service traders etc.
Some examples of guidance on suppression can be found in:
- Compliance Operational Guidance; and
- VATNMT6200 of the New Means of Transport Guidance
If you discover a taxable person who is suppressing his income and/or expenditure you should contact the VAT Fraud Team.