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 countries
Tax representative for British companies?
Comments
1
Austria
Yes
VAT agent required with no shared liability.
2
Belgium
No – requires confirmation
The EU-UK Mutual Assistance Protocol abolishes the requirement, but subject to a ratification agreement by the European Parliament. The tax office suspended the obligation.
3
Bulgaria
Yes
Should be until January 15, 2021. For Distance Sellers; March 31, 2021 for other sellers.
4
Croatia
Yes
5
Cyprus
No
Suspended tax representative required, subject to ratification of the EU-UK Trade and Cooperation Agreement
6
Czech Republic
No
7
Denmark
Yes
Requirements for UK businesses were expected to drop soon
8
Estonia
Yes
9
Finland
No
The 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
10
France
No
The EU-UK Mutual Assistance Protocol removes this requirement
11
Germany
No
VAT agent required with no shared liability
12
Greece
Yes
13
Hungary
Yes
To avoid cancellation of your registration, you must appoint a tax representative by January 15th.
14
Ireland
No
15
Italy
No
The EU-UK Mutual Assistance Protocol removes this requirement.
16
Latvia
No
17
Lithuania
No
The EU-UK Mutual Assistance Protocol removes this requirement
18
Luxembourg
No
May require a cash payment to the tax office
19
Malta
No
A few exceptions
20
The Netherlands
No
In the case of VAT import permits pursuant to Art. 23; Distance Selling UK
21
Poland
No
He reversed his decision to request a UK business tax representative.
22
Portugal
Yes
Deadline until June 30, 202
23
Romania
Yes
UK VAT registrations have been canceled. Companies cannot reapply for a tax representative.
24
Slovakia
No
25
Slovenia
Yes
26
Spain
No
The EU-UK Mutual Assistance Protocol removes this requirement
27
Sweden
Yes
The 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
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:
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
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
Finland – Starting from September 1, 2024,
30th August 2024Changes at Amazon for European Online Sellers
23rd August 2024Slovenia Intends to Implement B2B E-Invoicing and
16th August 2024Popular Categories
Archives