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VAT: Tax Evasion

Question for Treasury

UIN HL3645, tabled on 2 November 2021

To ask Her Majesty's Government how many businesses have been investigated for VAT evasion that took place before January as a direct result of changes to VAT remittance and collection arrangements that came into effect that month.

Answered on

16 November 2021

On 1st January 2021, new legislation introduced by the Government took effect which changes the rules for the VAT treatment of goods sold by businesses based overseas. These changes were introduced to further address non-compliance and evasion of VAT.

HMRC has a long-standing programme of compliance activity with such businesses, which continues. Since 1st January 2021, HMRC has investigated 4,488 businesses for non-compliance with VAT obligations that took place before then.

Answered by

Treasury