Brexit consequences: Fiscal Representation to be required in Belgium for UK businesses

Brexit is approaching and EU governments are getting ready for a ‘no-deal’ scenario which means that the UK will be treated as a third-country for the EU and the rules and regulation which now govern the traffic of goods and services will no longer apply.

Under this scenario, taxable persons established in the UK will have to fulfill the VAT obligations which are imposed on all the taxable persons who are not established in the EU.

As for Belgium respects, there will be the requirement for all UK businesses to appoint a Fiscal Representative for VAT purposes in order to continue conducting operations in Belgium. This means UK businesses will not be able to benefit from their direct VAT registration after Brexit is effective.

File your request to appoint a Fiscal Representative before Brexit date to get 6-month grace period

The request to appoint a Fiscal Representative for VAT purposes must be filed to the Belgian tax authority before 30-03-2019 or a postponed Brexit date.

Within a period of 6 months following Brexit the tax administration will end the approval procedure. That is why they will grant the same period of 6 months as a grace period so businesses with their direct VAT registration number will be treated as if they have already been approved a Fiscal Representative.

As always we will keep you updated regarding all VAT news from Belgium, UK, Brexit and around the world.

If you have any comment you can always contact us.

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