Value Added Tax Act 1994 section 72

Offences

Section 72 sets out the criminal offences relating to VAT fraud and evasion, including the use of false documents and false statements, and specifies the penalties — fines and imprisonment — that apply on summary conviction and on conviction on indictment.

• Anyone knowingly involved in the fraudulent evasion of VAT commits a criminal offence punishable by a fine of up to £20,000 (or three times the VAT evaded, if greater) and/or up to 6 months' imprisonment on summary conviction, or an unlimited fine and/or up to 14 years' imprisonment on indictment.
• Producing false documents with intent to deceive, or knowingly or recklessly making false statements for VAT purposes, carries the same maximum penalties, with fines on summary conviction potentially calculated as three times the falsely claimed input tax credit, understated output tax, or falsely claimed refund.
• Where a person's conduct over any period must have involved one or more of these offences — even if the precise details are not known — that person is guilty of a separate offence carrying the same penalties.
• Acquiring goods or accepting services where a person has reason to believe the related VAT has been or will be evaded is a summary offence punishable by a fine of up to £20,000 or three times the evaded VAT, whichever is greater.