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HMRC internal manual

VAT Registration

Non-established taxable persons (NETPs): what is an NETP?

Any person who makes taxable supplies in the UK may have a liability to be registered in the UK even if they have no physical presence here. We refer to such persons as non-established taxable persons (NETPs).

An NETP is any person who is not normally resident in the UK, does not have a UK establishment and, in the case of a company, is not incorporated here.

A UK establishment exists if:

  • the place where essential management decisions are made and the business’s central administration is carried out is in the UK
  • the business has a permanent physical presence with the human and technical resources to make or receive taxable supplies in the UK.

We would normally consider a company which is incorporated in the UK to have an establishment here as long as it is able to receive business supplies at its registered office.

Note: We do not consider businesses established in the Isle of Man to be NETPs. They continue to benefit from the UK VAT registration threshold.