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HMRC internal manual

VAT Registration

From
HM Revenue & Customs
Updated
, see all updates

Non-established taxable persons (NETPs): responsibilities of a VAT representative

Section 48(3) of the VAT Act 1994 sets out a VAT representative’s responsibilities. The VAT representative is responsible for ensuring that:

  • all VAT returns are furnished on time, together with any tax due to be paid
  • records are made available for inspection when required
  • we are provided with any other information we may reasonably require.

The VAT representative has joint and several liability for VAT debts incurred by the NETP in the UK, so we can pursue them for any outstanding tax which has become due on or after the date from which they are appointed. Although the terms of appointment between a VAT representative and principal are commercial arrangements between the two parties, we will not accept any arrangement which seeks to limit the representative’s liability.

A VAT representative may act for more than one principal, but a principal may have only one VAT representative. Each principal must be separately registered.

Where a return submitted by a VAT representative has an over or underdeclaration, it should be dealt with in the same way as a return submitted by any other VAT-registered person. Any additional tax due and any penalties charged are payable in the normal way. Both the tax and the penalty are the joint and several liability of the representative and the principal.