UK companies VAT-registered in Belgium need to appoint a fiscal representative by 1 January 2021.

The Belgian tax authority informed UK companies that are VAT-registered in Belgium, that they need to appoint a fiscal representative by 1 January 2021.

At the end of the Brexit transition period on 31st December 2020, the UK becomes a third country for VAT purposes. As a result, UK businesses need to transfer direct VAT registrations to a Fiscal Representative in many Member States.

What is a Fiscal Representative?

Fiscal representatives act as VAT agents for non-EU businesses with a non-resident VAT registration in the EU. They are responsible for the accurate VAT submissions of their clients. In addition, the tax authorities can hold them jointly and severally liable for their client’s VAT. Therefore a fiscal representative will usually ask for a cash deposit or bank guarantee. However, in Belgium it is the tax authorities who request the bank guarantee from the non-EU business. This is to protect themselves from any missing VAT.

Next Steps

UK companies can begin the process of switching their direct VAT registration in Belgium to a fiscal representative now. However, the Belgian tax authorities are allowing businesses to the end of June 2021 to have this in place. This is due to an expected overload of applications from UK businesses switching their VAT registrations at the end of 2020.

To find out more about fiscal representation and what it means for your business post-Brexit, we are hosting a webinar on 13th August 2020. Register your free place today.

By |August 4th, 2020|