If you do not have a UK business establishment, are not normally resident here or in the case of a company incorporated here, you are a non-established taxable person (NETP) but you must still register for VAT in the UK if your taxable supplies exceed the current UK threshold. You may choose one of the following options:

register at Aberdeen VAT Business Advice Centre NETP Unit and deal with us directly; or
appoint an agent; or
appoint a tax representative.

You can find out more about NETPs in section 8. Further information on agents and tax representatives can be found in section 10.

8. Non-established taxable persons (NETPs): basic information

8.1 What is an NETP?

An NETP is any person who is not normally resident in the UK and who does not have a business establishment here and, in the case of a company, is not incorporated here. A taxable person is the legal entity that makes the supplies

8.2 What is a 'business establishment'?

The best way to explain is with some examples of what we consider are, and are not, business establishments

(a) What is considered to be a business establishment?

Premises from which trading activities directly related to the business are carried out.

(b) What is not considered to be a business establishment?

The business address of an accountant or agent.
Premises from where a business provides:

- bookkeeping;

- accountancy; or

- invoicing services;

for a non-established taxable person who does not actually make supplies in the UK.

In these circumstances we would need evidence of some further business activities to accept an application for registration.

8.3 When must an NETP register for VAT in the United Kingdom (UK)?

If you make:

taxable supplies or
distance sales or
acquisitions or
relevant supplies

in the UK above certain limits, you must register for VAT here, charge any UK VAT due and pay it to us.

Paragraphs 8.4 and 8.5 will help you decide if you are making supplies of goods or services in the UK.

8.4 How do I decide if I am making a supply of goods in the UK?

You may be making a supply of goods in the UK if the goods in question have at some stage been physically located here. You may also be making supplies even if you have no place of business here. Examples of supplies of goods in the UK include the sale of goods:

located in the UK and which remain here;
located in the UK for export to a place outside the EC;
located in the UK for removal to another EC Member State;
you import into the UK from outside the EC (but if your customer imports the goods, your supply is outside the scope of UK VAT);
in the UK which you have acquired from another EC Member State; or
you install or assemble here (but not if you are using the simplified procedure for installed or assembled goods).

8.5 How do I decide if I am making a supply of services in the UK?

There are a number of rules for deciding where different types of services are treated as supplied. If the place of supply of your services is the UK, you must normally charge any UK VAT due and pay it to us, even if you do not have a place of business here. Notice 741 Place of supply of services will help you decide where your services are supplied.

You do not need to register in the UK if you only make supplies of services on which your customer is liable to account for any VAT due under the reverse charge procedure. For detailed information on the place of supply of services and the reverse charge please see Notice 741 Place of supply of services. Where services are transferred between branches of the same company, you may generally disregard the supply for the purposes of UK VAT. For further information see Notice 700/2 Group and Divisional Registration.

9. Non-established taxable persons (NETPs): voluntary registration

9.1 When can I register voluntarily as an NETP?

You may be entitled to register for VAT in the UK voluntarily and claim back any input tax you have paid here if you have no UK business establishment, but make taxable supplies here (see paragraphs 8.2, 8.4 and 8.5).

10. Non-established taxable persons (NETPs): Tax representatives and agents

10.1 Appointment and role of a tax representative

If you are an NETP and so have no business establishment in the UK (see section 8), you may appoint a tax representative.

A tax representative:

must keep VAT records and accounts and account for UK VAT on behalf of the business it represents; and
is jointly and severally liable for any VAT debts incurred by the business.

You may only appoint one person at a time to act on your behalf, although a tax representative may act for more than one principal at any time. The representative must keep separate VAT accounts and make separate VAT returns for each principal they represent.

10.2 What must I do if I appoint a tax representative?

You must still fill in Form VAT1 application for registration. Also, both you and the person you appoint must complete a Form VAT1TR. This form authorises us to accept that someone else is acting on your behalf. You will need to give your representative sufficient information to enable them to keep your VAT account, make returns and pay VAT on your behalf.

10.3 Will you make me appoint a tax representative?

We can only insist that certain NETPs appoint a tax representative. Those NETPs based in countries where certain mutual assistance arrangements exist can no longer be forced to have a tax representative.

10.4 May I appoint an agent instead of a tax representative?

Yes. Any arrangement you make with someone else to look after your VAT affairs will be subject to whatever contractual agreement you both decide. We cannot hold your agent responsible for any of your VAT debts. We reserve the right not to deal with any particular agent you may choose to appoint and we could still insist that you appoint a tax representative if we believe it necessary in some circumstances.

As with the appointment of tax representatives, with agents:

you may only appoint one person at a time to act as your agent (although an agent may act for more than one principal);
you must still fill in the appropriate form to apply for registration;
we will need your authority before we can deal with your agent. In the case of agents this should be by letter. A suggested form of words for this authority is at paragraph 10.5; and
you will need to give your agent sufficient information to enable them to keep your VAT account, make returns and pay VAT on your behalf.

10.5 Suggested wording for letter to authorise an agent or employee to act in VAT matters

"(Insert principal's name) of (insert principal's address) hereby appoints (insert name of UK agent or employee) of (insert address of UK agent or employee) to act as agent for the purpose of dealing with all their legal obligations in respect of Value Added Tax.

This letter authorises the above named agent to sign VAT return Forms 100 and any other document needed for the purpose of enabling the agent or employee to comply with the VAT obligations of the principal.

Signed (insert principal's signature)

Date (insert date)".

10.6 What if I do not wish to appoint a tax representative or an agent?

If you do not wish to appoint a tax representative or agent, you must still meet all your obligations under UK VAT law. This includes:

registering for VAT at the correct time;
keeping a record of everything you buy and sell in relation to your business in the UK;
keeping the records needed to complete your VAT return;
producing records and accounts to us for inspection;
keeping a note of all the VAT you have paid and charged for each period covered by your VAT return; and
paying the right amount of tax on time.

Further information on keeping records and accounts is in Notice 700/21 Keeping records and accounts.

To register for VAT you must contact the Aberdeen office.

12.2 Visits by our officers

From time to time, we may need to inspect your VAT records. This is to ensure that you have accounted for the correct amount of tax at the right time. We will normally contact you before we visit, to arrange a mutually convenient date and time. Our officers will also try to deal with any queries you may wish to raise. These visits will be conducted as swiftly as possible with the minimum of inconvenience to your business.

If you have a business establishment in the UK, we will normally visit you there. We will expect your books and trading records to be made available at this address. If you have appointed a tax representative or agent, we will normally visit them.

If you do not have a business establishment and have not appointed a tax representative or agent, we will expect you to make your books and trading records available on request at our Aberdeen VAT office. We will examine your records at this office and then return them to you.

19. How to complete application Form VAT1TR to appoint a tax representative in the UK

Each of the following notes has the same number as the corresponding box on the form.

Please remember to write clearly. Please use black ink and write in CAPITAL LETTERS.

Note 1

Who owns the business?

Give the full name of the person who owns the business. This should be the same as box 1 on your application form. Also provide the address of the principal place of business, which is making distance sales to the UK. Your principal place of business is the place where you receive and deal with your orders and carry on and manage the day-to-day business.

Please remember to give the postcode and phone number where we can contact you.

You should also give your existing VAT registration number issued by the country of origin in the EC and your UK VAT registration number, if you already have one.

Note 2

Enter the full name and address of the tax representative in the UK.

Please give the full name and address of your tax representative. Remember to give the postcode and telephone number where we may contact your tax representative. This information should be identical to the information supplied in boxes 2 and 3 of application Form VAT 1A or box 4 of application Form VAT1C.

Note 3

Please give the date of appointment of the tax representative and VAT registration number, if any.

Enter the date you appointed your tax representative. You should also give your tax representative's VAT registration number, if they are already registered.

Note 4

Declaration.

The declaration must be signed and dated by both the owner AND the tax representative. Only the person specified below, for both the owner and tax representative should sign the declaration and tick the appropriate box:

For sole proprietors:	The sole proprietor, i.e. the owner.
For partnerships	All the partners.
For corporate bodies	A director, company secretary or authorised signatory. For authorised signatories, written approval from a director or a company secretary, showing their home address and National Insurance number should be submitted with the VAT 1 form. A partner for limited liability partnerships.
For unincorporated bodies	An authorised official e.g. for members clubs a secretary or chairman, for trusts a trustee or beneficiary, for professional associations a president or secretary etc.

VAT and European Market

Registering for VAT

Contents

1.VAT registration: basic information

5.9 What if I do not have a UK business establishment?