Brexit is likely to happen on 29th March 2019. This will result with significant changes of the position of British entities from the perspective of EU tax and duty law. One of those changes refers to a status of British companies registered in Poland for the VAT purposes.
Tax status of british entities after Brexit
When the Brexit will become a fact, the British taxpayers acting on the Polish market or registered in Poland for the VAT purposes, will be qualified as non – EU entities. As a result, regarding to the ruling of Polish Ministry of Finance, such companies will be obliged to appoint a tax representative in Poland.
Tax representative
According to polish law, tax representation services may be provided by polish entity having, among others, a right to providing a tax advisory services on a territory of Poland. Such tax representative is appointed by written agreement which shall include among others: (i) identification details of the parties of the agreement including tax identification numbers, (ii) the address where the documents for tax purposes are prepared and stored as well as (iii) the statement of the entity appointed as a tax representative declaring that he fulfilled all of conditions to have an authorisation to provide the tax representation services.
Consequences of failure to fulfill an obligation of appointment of the tax representative
British companies registered for the VAT purposes in Poland will not lose this status automatically on the day of Brexit. However, such entities will be obliged to appoint the tax repesaentative immediately after the day of Brexit. Failure to fullfill this obligation for a longer period will result with deregistration from the registry of VAT payers as well as with penal fiscal concequences.
