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.