Non-EU companies are required to appoint a Fiscal Representative in order to be registered for VAT in many Member States.
Following the end of the Brexit transition agreement on 31 December 2021, this was a consideration for UK companies who wanted to remain registered or had to register as a result of changes to supply chains brought about by Brexit.
Unfortunately, the position was complicated as the EU-UK Trade and Cooperation Agreement (TCA) which provided the framework for the UK’s ongoing relationship with the EU was only released on 24 December 2020 so many tax authorities had not finalised their position. This led to considerable confusion in the early months of 2021 with the position being unclear in many territories.
Some tax authorities deregistered UK businesses if they didn’t appoint a Fiscal Representative whilst others removed the requirement for UK businesses to appoint one. Countries that removed the requirement included Belgium, France and Italy where many UK businesses are registered.
Source: SOVOS
