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Will I need a fiscal representative after Brexit
Tick 19th March 2021 0 Comments

Since the UK left the EU VAT system on December 31, 2020, UK and EU e-commerce retailers or B2B supply chain operators may be required to appoint Tax Representatives VAT for their non-resident VAT returns.

However, on December 24, 2020, a Brexit Free Trade Agreement with no tariffs or quotas was announced. It included a VAT Mutual Assistance Protocol providing for cooperation on outstanding tax liabilities between the UK and EU Member States. As in Norway, this means UK companies will not require a VAT representative in some EU Member States that normally require it, such as France and Italy.Poland indicated that British companies with a local foreign VAT registration should already appoint a tax representative by January 1, 2021. Otherwise, they will violate local regulations even with the last filings in 2020. Filed in 2021. Bulgaria expects to appoint a tax representative end of March 2021 for e-commerce sellers. Portugal until June 31, 2021
UK importers to EU countries will need an indirect tax representative for Customs and VAT if their freight forwarder does not act as their direct representative.British companies need an EU tax representative after Brexit?Following the conclusion of the EU-UK Trade and Cooperation Agreement, UK companies now require a tax representative in the following countries:

EU countriesTax representative for British companies?Comments
1AustriaYesVAT agent required with no shared liability.
2BelgiumNo – requires confirmationThe EU-UK Mutual Assistance Protocol abolishes the requirement, but subject to a ratification agreement by the European Parliament. The tax office suspended the obligation.
3BulgariaYesShould be until January 15, 2021. For Distance Sellers; March 31, 2021 for other sellers.
4CroatiaYes
5CyprusNoSuspended tax representative required, subject to ratification of the EU-UK Trade and Cooperation Agreement
6Czech RepublicNo
7DenmarkYesRequirements for UK businesses were expected to drop soon
8EstoniaYes
9FinlandNoThe EU-UK Mutual Assistance Protocol abolishes the requirement, but the authorities turn to the tax representative until at least the agreement is ratified by the European Parliament
10FranceNoThe EU-UK Mutual Assistance Protocol removes this requirement
11GermanyNoVAT agent required with no shared liability
12GreeceYes
13HungaryYesTo avoid cancellation of your registration, you must appoint a tax representative by January 15th.
14IrelandNo
15ItalyNoThe EU-UK Mutual Assistance Protocol removes this requirement.
16LatviaNo
17LithuaniaNoThe EU-UK Mutual Assistance Protocol removes this requirement
18LuxembourgNoMay require a cash payment to the tax office
19MaltaNoA few exceptions
20The NetherlandsNoIn the case of VAT import permits pursuant to Art. 23; Distance Selling UK
21PolandNoHe reversed his decision to request a UK business tax representative.
22PortugalYesDeadline until June 30, 202
23RomaniaYesUK VAT registrations have been canceled. Companies cannot reapply for a tax representative.
24SlovakiaNo
25SloveniaYes
26SpainNoThe EU-UK Mutual Assistance Protocol removes this requirement
27SwedenYesThe EU-UK Mutual Assistance Protocol abolishes this requirement – authorities confirm that it will apply for some time without a tax refund for UK taxpayers (some exceptions, e.g. Imports)

Countries like the Netherlands require a tax representative for special procedures such as import VAT deferment. 

Do EU companies need a British fiscal representative after Brexit?

No. The UK does not require EU or non-EU resident companies to appoint a tax representative. The only caveat is that UK HMRC may impose an obligation on a company with poor VAT compliance. This is sometimes used for e-commerce sellers who have not registered for VAT or have fully declared the VAT due.

The role of the tax representative

A tax representative is a special type of VAT agent for foreign companies with VAT registration in another country. They are responsible for the correct calculation and reporting of their client’s VAT and are the first point of contact for the local tax office in case of questions or audits.

They are usually jointly and severally liable for the unpaid or undeclared VAT of their non-resident customers. As such, they typically charge higher fees and often require a bank guarantee or cash deposit to protect against any loss of customers