Are you a UK business and liable for EU VAT? Since January 1, 2021, the effective date of Brexit, you may be required to appoint a fiscal representative to fulfill your VAT obligations in certain European Union countries.
The fiscal representative: an obligation in some European Union (EU) countries
In accordance with Article 204 of Council Directive 2006/112/EC of 28 November 2006, some EU countries require suppliers/service providers established in a third country to appoint a fiscal representative if they to appoint a fiscal representative if they carry out taxable operations in their country, in order to fulfill their declarative obligations and to pay VAT.
Do UK companies have to appoint a tax representative for their EU operations?
As of January 1, 2021, England, Wales, Scotland, Jersey and Guernsey have become non-EU countries .
EU countries may therefore require UK suppliers/service providers to appoint a fiscal representative to declare and pay VAT on taxable transactions in their country.
- Some countries have decided to make the appointment of a fiscal representative mandatory (Austria, Hungary, Greece, etc.).
- Others have granted a special status to Great Britain (France).
- Finally, some have made the need for a tax representative conditional on the signing of a mutual assistance protocol on VAT (Spain, Belgium, etc.).
Countries requiring the appointment of a tax representative for UK companies
Countries Obligation to appoint a fiscal representative
Austria Yes, UK companies are required to appoint a tax representative for their taxable operations in Austria.
Belgium No
Bulgaria Yes, UK companies are required to appoint a tax representative for their taxable operations in Bulgaria.
Cyprus No
Czech Republic No
Germany No
Denmark Yes, UK companies are required to appoint a tax representative for their taxable operations in Denmark.
Estonia Yes, UK companies are required to appoint a tax representative for their taxable operations in Estonia.
Greece Yes, UK companies are required to appoint a tax representative for their taxable operations in Greece.
Spain
Finland Yes, UK companies are required to appoint a tax representative for their taxable operations in Finland.
France No
Croatia No
Hungary Yes, UK companies are required to appoint a tax representative for their taxable operations in Hungary.
Ireland No
Italy No
Lithuania No
Luxembourg No
Latvia No
Malta No
The Netherlands No, except when the company wishes to benefit from the reverse charge mechanism of the import VAT
Poland No
Portugal Yes, UK companies are required to appoint a tax representative for their taxable operations in Portugal
Romania Yes, UK companies are required to appoint a tax representative for their taxable operations in Romania.
Sweden Yes, UK companies are required to appoint a tax representative for their taxable operations in Sweden.
Slovenia Yes, UK companies are required to appoint a tax representative for their taxable operations in Slovenia.
Slovakia No
The fiscal agent: a secure option for UK suppliers/service providers
In some countries, such as France, UK suppliers/suppliers who carry out taxable transactions (for which they are liable for VAT in France) are not required to appoint a fiscal representative, but they may opt to appoint a fiscal agent.
The tax agent will be able to accompany the company on all issues:
- Analysis of the activity and operations, obligations and requirements
- Management of different needs: VAT registration, data processing and filing of VAT returns, ESL, INTRASTAT, VAT refund application.
- Analysis and validation of the conformity of invoices and supporting documents with regard to European regulations and the local regulations of the countries concerned.
- Management of communications with the Administrations in the language of the countries concerned.
- Assistance during a tax audit carried out by one or more Member States.
