Brexit changes to VAT obligations

Changes to Intrastat and Fiscal Representation requirements post Brexit

It is vital that businesses of all sizes, take steps to understand the impact of Brexit and VAT on their company’s operations and processes. Failure to implement these new requirements on Intrastat reporting and Fiscal representation requirements will hamper the ability to trade, could lead to significant delays in processes and negatively affect your businesses’ VAT compliance.

Brexit impact on Intrastat reporting

Businesses importing goods (arrivals) into Great Britain (UK minus Northern Ireland) from the EU will still be expected to prepare monthly Intrastat reports.

The threshold is £1.5 million. This will apply until 31 December 2021.

Intrastat declarations will have to be filed for the movement of goods between Northern Ireland and the EU.

Business exporting goods (dispatches) to the EU will no longer be obligated to prepare Intrastat declarations.

Fiscal Representation requirements post Brexit

Following the UK’s exit from the EU VAT regime on 31st December 2020 and the very late trade deal concluded on 24th December 2020, UK businesses were still left with uncertainty regarding the obligation to appoint fiscal representation in order to maintain their VAT registration in some EU countries.

As businesses scramble to put fiscal representation after Brexit in place, following the free trade and its protocol on the cooperation and combating VAT, customs and excise fraud, some countries confirmed that this would no longer be a requirement for UK established businesses, while other countries maintained the requirement and in some cases imposed tight deadlines for implementation.

Romania and Poland for example still require fiscal representation to be put in place from 1st January 2021. Bulgaria has sent a deadline of 15th January 2021 (for distance sellers).

Belgium have set a deadline of 31st Mar 2021, while Portugal announced a deadline of 30th June 2021.

Although no official announcement has been made by many tax offices it is expected that Italy, Spain, Sweden, Lithuania, for example, will no longer require fiscal representation for UK established businesses.

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