As the UK is preparing to leave the EU VAT system on December 31, 2020, UK and EU e-commerce sellers may be required to appoint tax representatives to represent them when compiling their VAT reports. It turns out that 19 countries out of the 27 EU will require some kind of tax representation. What is the position of Great Britain itself?
What will be the role of the tax representative?
A tax representative is a special type of VAT agent for foreign companies that have VAT registration in another country. He is responsible for the correct calculation and reporting of his client’s VAT and is the first point of contact with the local tax office in case of questions or audits.
Usually bears joint and several liability for the unpaid or undeclared VAT of its non-resident clients. As such, it typically charges higher fees and often requires a bank guarantee or cash deposit to protect against any loss of customers.
Do British companies need a tax representative in the EU after Brexit?
OIt turns out that 19 out of 27 European Union countries will have a regime of tax representatives. However, not all of them will be mandatory or will impose obligations on the agent. What is certain, is that a UK e-commerce retailer will need a tax representative in countries such as if the VAT were registered in all EU countries:
Austria; Belgium; Croatia; Cyprus; Denmark; Estonia; France; Germany (agent only); Greece; Hungary; Italy; Lithuania; Poland; Portugal; Romania; Slovenia; Spain; and in Sweden. Countries like the Netherlands would require a tax representative for special procedures such as import VAT deferment.
The European Union is trying to reduce this list by signing mutual tax assistance agreements. So far, it has only signed one such agreement with Norway. Such an agreement is part of the ongoing Brexit Free Trade Agreement negotiations. This could eliminate many EU countries from the above list for UK companies.
Do EU companies need a British fiscal or tax 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 merchants who have not registered VAT or have fully declared the VAT owed.
Need help with UK VAT registration? Contact Us, or you may read the necessary documentation na naszej stronie.
As the UK is preparing to leave the EU VAT system on December 31, 2020, UK and EU e-commerce sellers may be required to appoint tax representatives to represent them when compiling their VAT reports. It turns out that 19 countries out of the 27 EU will require some kind of tax representation. What is the position of Great Britain itself?
What will be the role of the tax representative?
A tax representative is a special type of VAT agent for foreign companies that have VAT registration in another country. He is responsible for the correct calculation and reporting of his client’s VAT and is the first point of contact with the local tax office in case of questions or audits.
Usually bears joint and several liability for the unpaid or undeclared VAT of its non-resident clients. As such, it typically charges higher fees and often requires a bank guarantee or cash deposit to protect against any loss of customers.
Do British companies need a tax representative in the EU after Brexit?
OIt turns out that 19 out of 27 European Union countries will have a regime of tax representatives. However, not all of them will be mandatory or will impose obligations on the agent. What is certain, is that a UK e-commerce retailer will need a tax representative in countries such as if the VAT were registered in all EU countries:
Austria; Belgium; Croatia; Cyprus; Denmark; Estonia; France; Germany (agent only); Greece; Hungary; Italy; Lithuania; Poland; Portugal; Romania; Slovenia; Spain; and in Sweden. Countries like the Netherlands would require a tax representative for special procedures such as import VAT deferment.
The European Union is trying to reduce this list by signing mutual tax assistance agreements. So far, it has only signed one such agreement with Norway. Such an agreement is part of the ongoing Brexit Free Trade Agreement negotiations. This could eliminate many EU countries from the above list for UK companies.
Do EU companies need a British fiscal or tax 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 merchants who have not registered VAT or have fully declared the VAT owed.
Need help with UK VAT registration? Contact Us, or you may read the necessary documentation na naszej stronie.
Recent entries
Category
Archive
Contact
Tick EU Sp. z o.o
ul. Sielawy, nr 21A/5
61-612 Poznań
E-mail: support@tickeu.com
Search
About me
Justyna Urbaniak
Co-founder of the Tick company. I write a blog for you about VAT issues and more. We invite you to read and follow our posts ;-).
Popular Post
Slovakia to Increase VAT to 23% in
19th September 2024Finland – Starting from September 1, 2024,
30th August 2024Changes at Amazon for European Online Sellers
23rd August 2024Popular Categories
Archives