Spain warns Brexit UK on VAT Fiscal Representative
- Mar 3, 2019 | Richard Asquith
The Spanish tax authorities are warning UK companies of the obligation to appoint a local fiscal representative for compliance and reclaims in the event of a no-transition deal Brexit on 29 March 2019.
When the UK leaves the EU, it will also leave the EU VAT regime and be considered a third-country. In 19 of the EU27, this will oblige UK companies to appoint a fiscal representative to represent them for ongoing local VAT filings and some reclaims. For filings, or compliance, the fiscal representative is usually jointly and severally liable for VAT record keeping, charging and remitting VAT. Such VAT agents will generally ask for larger fees and a bank guarantee to protect them for their shared VAT liability.
For reclaims, recovery of Spanish VAT suffered by UK businesses for a limited range of costs, UK companies will have to file paper-based applications under the 13thDirective instead of the online 8thDirective system with HMRC for EU businesses.
Need a fiscal representative in Spain?
Non-EU businesses selling in Spain will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.
Need help with your Spanish VAT compliance?
Researching Spanish VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.