Do You Need a Fiscal Representative for VAT in the EU?
When expanding your business into the EU, one of the key VAT issues is whether you need to appoint a fiscal representative in each member state where you selling to. The requirement differs between countries and depends on whether you're an EU or non-EU business. For UK businesses, the situation has become more complex after Brexit.
What is a Fiscal Representative?
A fiscal representative operates as a liaison between non-EU businesses and the tax authorities in a foreign country. They verify the accuracy of all VAT obligations made by overseas clients and take responsibility for the handling of VAT registration, filing, and payment. This fiscal representative, also known as a tax representative, allows non-EU companies to trade in countries where fiscal representation is mandatory.
When Do You Need a Fiscal Representative?
You will generally need a fiscal representative if your business is based outside the EU and you are selling goods or services in an EU country. Some EU countries require non-EU businesses to appoint a fiscal representative as a legal obligation to ensure VAT compliance. Others do not have this requirement, meaning you can register and manage VAT directly without needing a local representative.
Special Case for UK Businesses After Brexit
After Brexit, the UK is no longer a member of the EU. However, UK and EU made an agreement about free trade includes a VAT mutual assistance Protocol in 2020. This means UK businesses are exempt from fiscal representative requirements in some EU countries, including France and Italy, despite their usual mandate for non-EU businesses.
| EU Country | Fiscal representative required? (for UK companies) | Fiscal representative required? (for other non-EU companies) |
| Austria | Required | Required |
| Belgium | Not required | Required |
| Bulgaria | Required | Required |
| Croatia | Not required | Required |
| Cyprus | Not required | Required |
| Czech Republic | Not required | Not required |
| Denmark | Not required, unless imports/exports goods in Denmark | Required |
| Estonia | Required | Required |
| Finland | Not required | Required |
| France | Not required | Required |
| Germany | Not required | Not required |
| Greece | Required | Required |
| Hungary | Required | Required |
| Ireland | Not required | Not required |
| Italy | Not required | Required |
| Latvia | Not required | Not required |
| Lithuania | Not required | Required |
| Luxembourg | Not required | Not required |
| Malta | Not required | Not required |
| Netherlands | Not required | Not required |
| Poland | Not required | Required |
| Portugal | Required | Required |
| Romania | Required | Required |
| Slovakia | Not required | Not required |
| Slovenia | Required | Required |
| Spain | Not required | Required |
| Sweden | Not required | Required |
| Norway | Not required | Required |
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