VATF35310 - What to consider prior to determining whether to use an intervention: making and issuing a Notice of Direction: applying the measure: introduction
The NoD must be used appropriately, proportionately and with care.
When you believe that you have ‘reasonable grounds for believing’ that ‘VAT chargeable might not be paid’ a NoD specifying the records that will need to be kept may be issued.
It is important that each case is looked at on its own merits and the NoD tailored to fit the particular circumstances of the business. Details of what information we require the business to record must also be as specific as possible and this is discussed in VATF35320.