Commentary

726 Joint and several liability for unpaid VAT

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

726 Joint and several liability for unpaid VAT

Part V8 HMRC Notices | Commentary

726
Joint and several liability for unpaid VAT

August 2018

This notice cancels and replaces Notice 726 (August 2003).

1 Overview

1.1 What this notice is about

This notice explains how you could be made jointly and severally liable for the unpaid VAT of another VAT-registered business when you buy and/or sell specified goods.

Main narrative treatment—V3.502.

1.2 What's changed

This notice has been updated about how to spot missing trader VAT fraud.

1.3 Who should read this notice

If you're a VAT-registered business and buy or sell certain specified goods mentioned in paragraph 1.4, you should read this notice.

1.4 The specified goods

This measure only applies where there is a supply of goods or services that are subject to widespread VAT fraud – in particular, missing trader intra-community (MTIC) VAT fraud. Because of the way in which this fraud continually mutates, including the types of goods that are used to perpetrate the fraud, the list of specified goods was extended in May 2007.

For supplies made between 10 April 2003 and 30 April 2007, the specified goods were:

  1.  

    —     telephones and any other equipment, including parts and accessories, made or adapted for use in connection with telephones or telecommunications;

  2.  

    —     computers and any other equipment, including parts, accessories and software, made or adapted for use in connection with computers or computer systems.

For supplies made on or after 1 May 2007, the specified goods are any:

  1.  

    —     equipment made or adapted for use as a telephone and any other equipment made or adapted for use in connection with telephones or telecommunication;

  2.  

    —    

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