Non-established taxable persons (NETPs): fit and proper VAT representatives for NETPs
From 7 November 2016, the Department has the power to refuse to register a person as a VAT representative, or to cancel a person’s registration as a VAT representative, if they are satisfied that the person is not a fit and proper person to act in that capacity.
In determining whether a particular individual is a fit and proper person to act as a VAT representative for an NETP, the Department will use the following criteria.
A person may not be accepted to act as a VAT representative for an NETP if they
- have been disqualified as a Director under Company Law
- are, or have been involved, in crime and/or have relevant criminal convictions
- have had previous requests for a similar role in VAT or any other regime revoked or refused
- have personally received penalties for deliberate wrongdoing
- have any connection with the business they wish to represent, or with key persons involved in that business, or with any non-compliant or fraudulent businesses
- have fraudulent trading history
- hold no assets and have no insurance
- have not fulfilled their own tax responsibilities, for example not paying their own VAT liabilities or not submitting their personal tax returns
- have outstanding, unmanaged HMRC debts or a history of poor payment
- submit or have previously submitted, an application that is inaccurate and incomplete and is an attempt to deceive, for example the hijacking of another person’s name
- are bankrupt or in a IVA (Individual Voluntary Arrangement).
This list is not exhaustive.
Where you consider that the appointed VAT representative is not a fit and proper person, you may refuse to register them as a VAT representative, or cancel their registration as a VAT representative. Where the NETP is under a direction to appoint a VAT representative, you should instruct them to appoint somebody else who meets the ‘fit and proper’ criteria.