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HMRC internal manual

VAT Registration

Non-established taxable persons (NETPs): additional powers for use against non-compliant NETPs

In addition to the power to direct appointment of a VAT representative and/or to require some form of security (see VATREG37400), where an NETP is seriously non-compliant, you may, where you think it would be appropriate to the risk involved,

  • compulsorily register them (if they are not already registered)
  • direct them to use monthly VAT returns.

Where a non-compliant NETP

  • doesn’t have a business establishment in the UK, and
  • sells goods which are in the UK at the point of sale to UK consumers via an online marketplace such as eBay or Amazon

you may treat the online marketplace/s as jointly and severally liable for the overseas seller’s VAT liabilities. (In practice, we expect the effect of this to be that the marketplaces will refuse to host sales listings for any overseas sellers whose VAT debts they risk having to meet themselves.)