After the UK left the EU Customs Union, EU members began changing their rules on how UK importers should appoint their fiscal representative to continue shipping their goods in the EU countries. From 1 January 2021, UK importers are required to appoint a resident indirect customs representative or a tax agent to comply with import customs and VAT obligations. This person or entity should act as customs declarant and a fiscal representative and therefor is jointly liable for import taxes and VAT.
Likewise, the UK have also introduced new rules and restricted the rights of non-resident agents. These changes cover a wide spectrum of aspects, including:
A Special Procedures Authorisation
Making Simplified Customs Declaration
Authorised Economic Operator (AEO) authorisation
A comprehensive Customs Guarantee.
Before Brexit, some countries like Germany, France and the Netherland were quick flexible for infrequent importers who used agents or fiscal representatives from third countries which the UK has become after 1st of January 2021. The rules for such importers are set out in the EU Customs Code. Such code requires the vendors to appoint an indirect representative or a fiscal agent. Alternatively, their freight forwarder can act as direct intermediary. However, generally freight companies are not willing to accept such representation and do not normally offer such services.
Similar requirements are now being enforced for exports from the EU. The EU countries are now phasing in the requirements to appoint a fiscal representative.
Get in touch and enquire how we can help you with fiscal representation in the UK
UK-Accountant – Customer Service
You may be interested to read this