- HMRC will contact businesses believed to be non-established taxable persons (NETPs) for VAT purposes
- Businesses will have 30 days to challenge HMRC’s decision
- HMRC will send a letter to businesses it believes are NETPs for UK VAT purposes
- The letter targets businesses using an agent or serviced office address as their place of registration
- HMRC asks businesses to provide evidence of being established in the UK for VAT purposes
- Businesses must meet certain tests to be considered established in the UK for VAT purposes
- HMRC is primarily sending letters to businesses that trade on online marketplaces
- NETPs must be registered for VAT, even if their turnover is below the registration threshold
- Businesses can submit relevant evidence within 30 days if they disagree with HMRC’s decision
- Agents receiving the letters should consult with their clients as soon as possible
- The letter outlines the procedure for requesting a review or appealing to an independent tribunal.
Source: icaew.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
