The Spanish Tax Authorities have confirmed that UK companies that are registered for VAT in Spain will be required to appoint a Fiscal Representative in the event of a hard Brexit where the UK leaves the EU without a withdrawal agreement being in place.
This is because the UK will no longer be a Member State so the VAT registration rules applicable to businesses from outside the EU will apply. It is expected that there will be delays in the Spanish Tax Authorities being able to process the significant number of applications that are made but it is important to ensure that the application is made before the UK leaves the EU to protect your position. Appointing the Fiscal representative will not result in any change to the VAT number that has previously been allocated by the Tax Authorities. There has been no specific reference by the Tax Authorities to the position if the withdrawal agreement is accepted or Article 50 is extended delaying the UK’s exit but the implication is that these events will postpone the requirement to appoint a Fiscal Representative.