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0113 246 1234

Kittel VAT risks and how to protect your business

Businesses have the right to reclaim input VAT, but it comes with a caveat.

HM Revenue & Customs (HMRC) can deny this right if they believe you knew, or should have known, that your transactions were linked to fraud.

This is known as the Kittel principle.

Over the past year, more businesses have faced challenges from HMRC, where input VAT recovery has been refused under these circumstances.

The risks of Kittel VAT include denied VAT recovery, large fines, reputational damage, and increased scrutiny from tax authorities.

How to protect your business

Here are key strategies to shield your business from these risks:

Taking these steps can protect your business from fines, penalties, and reputational damage.

If you would like more advice on protecting your business from such risks, please contact us.

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