No fiscal representation in Cyprus post-Brexit

Fiscal representation not mandatory for UK businesses in Cyprus

The good news keeps rolling in for UK companies. Following suit of other countries, such as Belgium, Italy, Denmark, Norway, and possibly Poland, no fiscal representation will be required in Cyprus as announced by the tax authorities recently. This will take effect retroactively starting from 1 January 2021.

When is fiscal representation mandatory?

Non-EU companies are sometimes required to have fiscal representation in some Member States for tax purposes. A fiscal representative is liable for the non-EU business in front of the tax authorities, especially if any penalties are issued or there is any debt that is yet to be paid. Moreover, applying for a VAT number would not be possible in certain countries for non-EU companies that require a fiscal representative to be appointed without one.

As of 1 January 2021, the UK left the EU and therefore has the same obligations as third countries to instate fiscal representation. In the case of Cyprus and the other countries mentioned above, UK-established companies will not have this obligation.

Check out our comprehensive guide to verify your fiscal representation obligations.