Mandatory tax representation
As a result of the entry into force of the UK’s withdrawal agreement from the EU, it has become mandatory in Portugal to appoint a tax representative for companies and individuals with tax domicile in the United Kingdom, in particular for IRS or IRC taxpayers.
Thus, taxable persons who change their tax address to the United Kingdom after 1 January 2021may do so only with the appointment of a tax representative, whether it is:
- Foreign citizens – with data change with the TA
- Nationalcitizens – with data change with the services of the Citizen Card, the Institute of Registers and Notaries (IRN)
- Applications for the allocation of NIF by taxable persons with tax address in the United Kingdom
For companies or individuals who have registered an address in the United Kingdom in the AT by 31 December 2020,they must now designate a tax represenante under the following conditions:
1. Deadline
They may appoint a tax representative without penalty until 30 June 2021. Until this happens, the correspondence will continue to be sent to the registered address.
2. Procedure
- For individual or collective taxpayers, with or without activity, in vat and IRS:
- In the Finance Portal: the non-resident individual or collective taxpayer can make the change in its finance portal;
- Through the e-counter: the taxpayer to be appointed tax representative of the non-resident may initiate the proceedings via the e-counter provided that he or she delivers together the power of attorney with powers to do so;
- In finance services (in person): the non-resident and the tax representative may request and accept the appointment of a representative in any finance service; the procedure may be carried out by the tax representative only if the tax representative submits a power of attorney with powers to that effect.
- Activity start statement:
- The taxable person registered with an address in the United Kingdom, without a tax representative, who wishes to register the commencing of activity will have to appoint a VAT and IRC or IRS representative.
- Statements can be delivered via e-counter or in person. In any case the declaration may be submitted by the representative, provided that the representative presents a power of attorney with powers to that effect.
3. Penalties
Failure to appoint a tax representative after June 30, 2021 is punishable by a fine of €75 to €7,500.
How can Moneris help?
With enormous experience and know-how In the monitoring of companies operating across borders and non-habitual residents or foreign nationals residing or operating in Portugal, Moneris may be its partner in this context of new obligations and procedures arising from the entry into force of the bilateral agreements between the EU and the United Kingdom, one of the main Portuguese affinity markets.
We provide tax representation services to dozens of companies and individuals, ensuring bilingual monitoring and a very particular knowledge of the British market.
Contact us: info@moneris.pt | 210 316 400.