Ireland introduces VAT fiscal representative
- Nov 30, 2020 | Richard Asquith
Ireland is to introduce the option for the Irish Revenue Commissioners to impose on non-resident VAT registered businesses from outside of the EU the obligation to appoint a Fiscal Representative. It is anticipated that this would be deployed where a trader has a poor tax compliance record.
The change is contained within the 2020 Finance Bill.
The obligation, termed Tax Representative, would oblige the taxpayer to appoint an agent established within the European Union. The Representative would be jointly and severally liable for the payment of any VAT for the business.
It may only be extended to businesses established in non-EU countries which do not have a mutual assistance agreement with Ireland or the EU. For example, Norway.
In the case with the Revenue Commissioners seeks to impose the requirement, it must provide the taxpayer with 21 days of notice. If the taxpayer subsequently fails to act, they may be liable for a €4,000 fine.
The UK has given HMRC similar powers.