Tax authorities are slowly preparing for the eventuality of the so-called hard brexit, which will be associated with significant changes in tax settlements. The Ministry of Finance indicates that British entrepreneurs registered in Poland as VAT taxpayers will be obliged to appoint a tax representative for the settlement of mentioned tax in our country. One of the effects of the announced brexit is the the United Kingdom will be treated as a third country by European Union countries, including Poland.
As explained by the Ministry of Finance, after brexit, enterprises from Great Britain, which does not have a registered office or permanent place of business in the EU, will have to establish a tax representative. This obligation will also apply to companies from the United Kingdom currently registered in Poland as active VAT taxpayers – at the same time the Ministry of Finance states that the indicated issue is still being analyzed.
However, if specific regulations in this respect are not issued, British enterprises registered for VAT purposes in Poland will be required to conclude an agreement with a tax representative. It needs to be highlighted that companies will not automatically lose their Polish VAT registration at the day of brexit however it will be obliged to indicate immediately a tax representative which is obligatory for companies from third countries.
In Poland, the tax representative is jointly and severally liable with the taxpayer for VAT settlements. The VAT Directive gives the option of introducing such a rule, although its introduction is not mandatory and there is no such a strict approach to full joint and several liability for VAT obligations of the taxpayer in some EU countries.
In this respect Accreo offers comprehensive services of a tax representative for foreign entities, including their VAT compliance. The Accreo Fiscal Representative team consists of highly qualified specialists with many years of experience gained while servicing non-tax residents (based in the EU or outside).
If you have any questions or concerns related to the VAT settlement after brexit, we will be pleased to provide support in this regard.