UK companies without a fiscal representative in Bulgaria face VAT number deactivation
UK companies who did not appoint a fiscal representative in Bulgaria by 31 March 2021 will have their Bulgarian VAT numbers deactivated.
UK-established companies who do not have a fiscal representative in place in Bulgaria after Brexit carry the risk of deactivation of their Bulgarian VAT numbers.
Fiscal representation after Brexit in Bulgaria
With the UK’s departure from the European Union following Brexit, countries that required fiscal representation for non-EU established companies had the option to make this obligatory for UK companies as well or not. Some countries such as France, Denmark, Belgium, and Italy opted out of requiring a fiscal representative for UK businesses. The Norwegian tax authorities also confirmed that UK companies would not have to reapply for a VAT number following Brexit.
Recently, the tax authorities in Bulgaria clarified that UK-established companies who did not appoint a fiscal representative and notify the Bulgarian National Revenue Agency (NRA) in writing by 31 March 2021 could face potential deactivation of their Bulgarian VAT numbers.
Fiscal representation: What is it?
A fiscal representative is jointly and severally liable with the taxpayer. In this regard, the fiscal representative would be the person responsible for paying any penalties or incurred debts by the taxpayer in case the taxpayer does not pay the amount due themselves.
Marosa provides fiscal representation services throughout the European Union through its EU branches and local delegates.
What happens if a UK company did not appoint a fiscal representative in Bulgaria?
In case the UK business did not appoint a fiscal representative and notify the NRA by the due date, their Bulgarian VAT registration would no longer be valid and would be automatically deactivated. They may also be liable for any VAT due on input VAT that wasn’t able to be deducted since the date of VAT registration. This includes VAT on domestic purchases, reverse charge transactions, and imports.
Get in touch
Need help with fiscal representation or communications with the tax authorities regarding a deactivated VAT number? We would be glad to offer a helping hand. Contact us to find out more about how we can help you.