International network
Working together with its EU VAT network, 4 Eyes Ltd provides specialist VAT advisory services to non-UK based companies trading in the UK and to UK or international companies trading throughout the EU. Our affiliation to this network ensures that our clients will always be advised by the appropriate national expert.
VAT fiscal representation post Brexit
When the UK left the European Union on 31st December 2020, UK businesses which were already VAT registered in EU states became required by many countries to appoint a local fiscal representative (fiscal rep). Many other UK businesses became liable to be VAT registered in individual EU Member States. The UK is no longer be part of the EU Single Market (as of 1 January 2021) and new controls have been placed on the movement of goods between the UK and the EU.
What is a fiscal representative?
Where a company is required to be registered for VAT in another country because of its business operations, a fiscal representative may be appointed to act as local entity that represents foreign traders for VAT purposes. EU Member States require non-EU businesses to appoint a representative when registering for VAT in local jurisdictions.
What does a fiscal representative do?
The fiscal representative represents foreign traders in relation to local tax authorities.
The fiscal representative is often jointly and severally responsible for the seller’s VAT liabilities. This effectively means that the rep serves to assist with compliance, helping to ensure VAT returns are submitted on time and any VAT due is paid in full.
The fiscal representative ensures you are tax compliant with local VAT obligations. Depending on the jurisdiction, VAT payments often must go through the fiscal representative directly.
Do I need a fiscal representative?
If you are a UK business selling goods into Europe, your VAT registration will no longer be compliant in many countries come the end of the Brexit transition period. This means marketplaces such as Amazon could impose restrictions on your ability to trade. The process can take several weeks to set up so you should not delay.
Why is it necessary to have a fiscal representative?
As of 1 January 2021, UK businesses will be considered non-EU business. This means the following EU countries require fiscal reps for non-EU established businesses with local EU VAT registrations. Should any compliance problems relating to a foreign seller come to surface, local tax authorities prefer to have a local contact to deal with directly. This is especially the case if there is a failure to pay tax altogether.
Which EU countries require a fiscal representative?
| EU Country | Fiscal representative required? |
| Austria | Yes |
| Belgium | Yes |
| Bulgaria | Yes |
| Croatia | Yes |
| Cyprus | Yes |
| Czech Republic | – |
| Denmark | Yes |
| Estonia | Yes |
| Finland | – |
| France | – |
| Germany | Yes (Agent Only) |
| Greece | Yes |
| Hungary | Yes |
| Ireland | – |
| Italy | Yes |
| Latvia | – |
| Lithuania | Yes |
| Luxembourg | – |
| Malta | – |
| Netherlands | Yes |
| Poland | Yes (UK taxpayers will require a Fiscal Rep on 1 January 2021 or face not being able to file their VAT returns). |
| Portugal | Yes |
| Romania | Yes |
| Slovakia | – |
| Slovenia | Yes |
| Spain | Yes |
| Sweden | Yes |
| Non–EU | Fiscal representative required? |
| Iceland | Yes |
| Norway | Yes |
| Switzerland | Yes |
| United Kingdom | At tax office request |
It should be noted that The Netherlands will require fiscal representation for special schemes such as import VAT deferment.
Next steps
If your business needs assistance with its new post Brexit EU VAT obligations, then please contact 4 Eyes Ltd.
