Since Brexit, VAT rules have notably shifted, presenting compliance challenges for cross-border businesses. VAT fiscal representation enables non-established businesses to meet local VAT obligations via a local professional. The representative ensures compliance and is often jointly liable for VAT debts. While UK businesses may need one in some EU states, EU businesses typically register directly in the UK.
Supporting UK and EU Firms with VAT Fiscal Representation
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United Kingdom
Author: Ema Stamenković
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Content accuracy validation date:
19.12.2025
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Since Brexit, VAT rules between the UK and EU have changed significantly, creating new compliance challenges for cross-border businesses. Understanding when a VAT fiscal representative is required is now essential.
What Is VAT Fiscal Representation?
VAT fiscal representation allows a non-established business to fulfil local VAT obligations in a country where it has no presence. A locally established professional handles registration, filings, payments and acts as the official contact with tax authorities. The representative ensures accurate VAT application and full compliance. In many cases (especially for non-EU businesses in the EU), it is a legal requirement. The fiscal representative is often jointly and severally liable for VAT debts and errors. This differs from general tax representation, which may cover broader tax obligations.
How Brexit Changed Everything
The UK is now a third country. There is no longer a unified EU–UK VAT system. Each EU Member State and the UK apply their own national rules for non-resident registration and compliance. Mutual assistance exists, but requirements are not harmonised.
Do UK Businesses Need a Fiscal Representative in the EU?
It depends entirely on the specific EU country:
- Some allow direct VAT registration for UK businesses.
- Others still require a locally established fiscal representative, especially when importing goods, holding stock, or creating a local VAT liability.
Even where not mandatory, many UK companies appoint one to avoid errors, language barriers, or issues with DDP terms and imports.
Do EU Businesses Need a Fiscal Representative in the UK?
Generally, no. EU companies can register directly with HMRC and self-manage UK VAT.
However, HMRC may impose the appointment of a UK fiscal representative if there is a history of non-compliance, late filings, or outstanding liabilities.
Role & Liability of the Fiscal Representative
The agent signs VAT returns, communicates with authorities, and is jointly and severally liable for underpaid or incorrectly declared VAT in most jurisdictions. This requires thorough verification of invoices, calculations and supporting documents, providing strong protection for both tax authorities and the business.
When You Must Appoint One
Obligation arises when:
- You are non-established in the country,
- Your activities (imports, stock holding, certain supplies) trigger a local VAT liability, and
- The country’s law requires a local representative for non-residents.
Rules vary by Member State in the EU; the UK rarely requires it unless there are compliance concerns.
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