VATREG37410 | Non-established taxable persons (NETPs): fit and proper VAT representatives for NETPs

We can refuse to register a person as a VAT representative, or to cancel a person’s registration as a VAT representative, if satisfied that the person is not a fit and proper person to act in that capacity.

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.