BREXIT – Fiscal Representative in Poland – when required?

British company after Brexit will be treated as a non-EU country. British company intending to launch VAT taxed business activity in Poland or willing to prolong the current VAT registration is obliged to appoint a Tax Representative.

Does your company require to appoint a Fiscal Representative?

Non-Polish entities willing to carry out taxable supplies in Poland are obliged to register for VAT purposes regardless of their taxable turnover. Please keep in mind that the supply of goods and services for which the VAT is settled by the customer (a reverse-charge mechanism) does not require VAT registration.

What is more, in terms of taxpayers with non-EU registered offices there is an extra requirement to launch business activity in selected EU Member States – including Poland – need to appoint a local agent for the foreign trader – named Fiscal Representative.

The designation of a Fiscal Representative is made through the signing of a written agreement, which must be delivered to the tax authority.

What are the responsibilities of the Fiscal Representative in Poland?

• fulfilling obligations in the field of VAT settlements,
• storing and maintaining VAT records in accordance with Polish regulations,
• representing the company before tax authorities.

Bear in mind that only the Fiscal Representative is entitled to submit VAT returns on behalf of the non-EU company.

ATTENTION! Fiscal Representative is jointly and severally liable for the VAT obligations without any limitation along with the British taxpayer, therefore a need to set up the relevant financial guarantees arises.

Which sort of documents must be provided by the Company?

• Original certificate of the tax authority confirming status as a VAT taxpayer in the country of residency,
• Current extract from the company register,
• Company’s contract/Articles of Incorporation.

ASB is ready for assistance in establishing a business in Poland by reviewing your documentation and flow of transactions in the field of VAT first, appointing a professional Fiscal Representative, and taking due care that your company complies with local VAT obligations.