Fiscal representation not required post-Brexit in Italy

Fiscal representation after Brexit is not mandatory

Announced by the Italian tax authorities at the beginning of February 2021, UK companies will not be obligated to appoint a fiscal representative for VAT purposes. Normally, non-EU established businesses are required to have fiscal representation in Italy. Italy has followed suit of similar protocols adopted by France, Croatia, Denmark under certain circumstances, Norway, and Belgium.

What does this mean for UK companies VAT registered in Italy?

The same pre-Brexit protocols will apply. This means that when it comes to VAT registration in Italy, UK companies can opt for a direct VAT registration at the Pescara office where no fiscal representative needs to be appointed. On the other hand, UK companies can always choose to appoint a fiscal representative for VAT purposes if they wish.

UK companies that had previously appointed a fiscal representative to be compliant amidst the uncertainty should evaluate whether keeping the representative for the remainder of the year would be beneficial for them.

Companies that did not appoint any fiscal representative before 1 January 2021 and chose to go for the direct VAT registration route will not need to make any changes.

What is fiscal representation?

Fiscal representation is required in some member states for non-established businesses. The main roles of a fiscal representative come into play during the VAT registration process. Furthermore, they are jointly and severally liable with the taxpayer for any debts or penalties incurred by the local tax authorities.