VATREG37615 - Non-established taxable persons (NETPs): additional powers

In addition to the power to direct appointment of a VAT representative and/or to require some form of security, you may consider it necessary to

• compulsorily register the NETP (if they have an exemption from registration or not already registered)
• direct them to use monthly VAT returns.

Where a NETP

• sells goods which are in the UK at the point of sale to UK consumers via an online marketplace such as eBay or Amazon, and
• the online marketplace has not taken reasonable steps to ascertain the location of goods, place of establishment of the seller and the correct amount of VAT charged

an assessment can be raised against the online marketplace to pay the NETP’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.