Supplier & Customer VAT Fraud Risk Checks

Businesses should understand who they are trading with and take reasonable steps to identify potential VAT fraud risks within supply chains. HMRC may consider whether a business has carried out appropriate checks on suppliers, customers and transactions.

This page provides educational guidance on maintaining appropriate records, understanding commercial risk indicators and following published HMRC guidance relating to supply chain due diligence.

Key Points

• Know who you are trading with.
• Verify supplier and customer information where appropriate.
• Retain records of due diligence checks.
• Understand commercial risk indicators.
• Keep contracts, correspondence and transaction records.
• Review unusual transactions carefully.

Recommended Sections

• Why due diligence matters
• Understanding supply chain risks
• Supplier checks
• Customer checks
• Record keeping
• Responding to HMRC questions