Tax representation for post-Brexit UK sellers

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

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.