During this period, there have been no fundamental changes in relations between Poland and the United Kingdom in terms of tax issues, but once this period has come to an end, entrepreneurs should pay attention to significant changes concerning VAT settlements.
During the transitional period, transactions between the EU and UK entities have been settled for VAT under the current rules, i.e. the rules applicable to intra-Community supplies and intra-Community acquisitions of goods.
As from 1 January 2021 the United Kingdom will not be subject to EU VAT legislation as it has lost Member State status as a result of Brexit. This will lead to a change in the nature of commercial transactions. Transactions such as intra-Community supply/acquisition of goods and distance selling will no longer take place, but instead there will be exports/imports of goods.
In the case of service transactions with the UK, such transactions will be treated as transactions with third countries - non-EU countries.
After 1 January 2021, entities from the United Kingdom which are obliged to register for VAT purposes in Poland, i.e. those carrying out activities such as trading in this country or exporting, will have to appoint a fiscal representative.
An entrepreneur from the UK will be required to appoint a fiscal representative if he or she meets jointly the following requirements:
The duties of a VAT fiscal representative include:
A fiscal representative may be an entity which fulfils certain conditions regulated by the legislation. There is a legal requirement to sign a formal contract between the taxpayer and the fiscal representative. Moreover, the fiscal representative is jointly and severally liable with the taxpayer for all VAT obligations.
Companies of the Crowe group provide fiscal representation services for non-EU entities:
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VAT compliance and fiscal representative for non-EU companies