VAT Notice 726 explains how a business could be made jointly and severally liable for the unpaid VAT of another VAT registered business when buying and selling specified goods. The measure only applies where there is a supply of goods and services which are subject to widespread VAT fraud, such as missing trader intra-community (MTIC) VAT fraud.

The Notice has recently been updated to include guidance on how to spot missing trader fraud. The updated Notice is available on the website.