As of 1st of January, 2021 United Kingdom left the EU and the EU VAT zone, therefore UK distance sellers or B2B supply chain may need to have approved VAT representatives for their non-residential VAT returns.
A Fiscal Representative is a local entity that represents foreign traders for VAT purposes. They are responsible for the correct calculation and reporting of VAT of their client and are the first point of call for the local tax office in the case of questions or audits.
B2B supply chain operators may need to have approved VAT representatives in the following scenario – UK company buys from EU supplier products and continue selling them to other EU countries, registration is required in the country of the dispatch, EU member state.
In some of the EU member states UK companies will not be required to have a VAT fiscal representative, some EU member states will consider exemptions – it should be accurately investigated by the businesses in order to stay compliant.
It should be noted that fiscal representative for UK companies will be required in Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia, Greece, Hungary, Poland, Portugal, Romania, Slovenia.
Our team offers a global fiscal representative service as part of the VAT services.