§ RISK · 7 MIN READ
Missing-trader fraud (MTIC) and how to defend
Why supplier verification is the front line.
Published 2026-04-16 · Countersure
How MTIC works
A fraudster registers for VAT, sells goods (often electronics or commodities) into the UK supply chain, charges VAT, and disappears before remitting it to HMRC.
The buyer claims input VAT. HMRC chases the buyer for the loss.
The Kittel principle
The Court of Justice of the EU established that input VAT can be denied where the buyer knew or should have known they were participating in a fraudulent supply chain.
The bar for "should have known" is lower than many businesses realise. Robust supplier verification is now the practical defence.
What good defence looks like
Verify VAT and EORI on intake. Re-verify periodically. Keep stamped artefacts of every check.
Countersure builds this into the standard onboarding flow — not as an afterthought.