Who will be responsible for the VAT affairs of the business in the UK?

If the Principal Place of Business is not within the UK and the business does not have an establishment within the UK, they are classed by HM Revenue & Customs (HMRC) as a 'non-established taxable person.'

The business may choose to manage its VAT affairs by either:

• representing themselves and dealing directly with HMRC from abroad
• appointing a tax representative
• appointing a tax agent

If the business chooses to manage the VAT affairs of the UK business themselves from abroad, HMRC will deal with the business through the Non Established Taxable Persons Unit based in Aberdeen.

If the business appoints a tax representative, the tax representative will be jointly and severally liable for any VAT debts incurred by the business. They must keep VAT records and account for UK VAT on behalf of the business they represent.

If the business appoints a tax agent, the tax agent will be responsible for maintaining your VAT records and accounting for UK VAT on your behalf but they are not jointly and severally liable for any VAT debts incurred by the business.