Value Added Tax Act 1994 section 48

VAT representatives and security

Section 48 sets out the rules requiring certain non-UK businesses making taxable supplies to appoint a UK-based VAT representative, and allows HMRC to demand security for VAT that is or may become due from such businesses.

• Non-UK businesses established in countries without mutual VAT enforcement arrangements with the UK may be directed by HMRC to appoint a UK-established VAT representative to handle their VAT obligations
• A VAT representative is personally liable — jointly and severally with the overseas business — for ensuring compliance with all VAT obligations, though they are not themselves required to be VAT-registered
• HMRC may require non-UK persons making taxable supplies to provide security for any VAT that is or may become due, and this security is recoverable in the same way as unpaid VAT
• A direction to appoint a VAT representative or a requirement to provide security must be formally notified to the person concerned, and remains in effect until withdrawn or (in the case of a direction) the qualifying conditions no longer apply

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