Brexit and fiscal representation

Following Brexit, as 2020 came to an end, UK registered companies will change status in Denmark and the rest of the European Union. This means that, in some cases, UK companies will need to become VAT-registered and fiscally represented in Denmark as a result of the UK leaving the EU. Danish VAT Reg. is prepared and ready to assist any UK company that requires our services regarding VAT compliance in Denmark.

Some companies need fiscal representation in Denmark

The need for a Danish fiscal representative may occur when a company is registered outside of the EU and is selling goods in Denmark.

A UK company does not need a fiscal representative for VAT, but for import and customs duty.

If the company has a turnover in Denmark where it has to pay customs duty, we need a bank guarantee or deposit. The size of the security depends on the tariff to be paid for the goods, as the percentage varies a lot. If the company does not expect to have to pay customs duty in Denmark, we will not need a guarantee, but this may be subject to change.

If the company expects to have to pay customs duty, Danish VAT Reg. needs a bank guarantee or deposit, equivalent to the estimated maximum tariff for customs duty that we may be jointly liable for, in any given month, during the course of a year.

Up to this point, we do not know if we will be liable for import VAT, as this has not yet been decided by the Danish authorities. If we will be liable, we will adjust the amount of the guarantee.

… and some companies need fiscal representation abroad

If a company has VAT-liable activities in another country, VAT registration is required. And if the sale to private individuals exceeds the threshold for registration in the countries in question, VAT registration is also required.

It can be difficult to assess whether a company should be registered and determine from when a VAT registration should be valid. In a lot of countries, we can handle the contact to the relevant authorities as well as the paperwork in connection with the registration itself. In addition, we can make the periodic VAT reports and any Intrastat or other statistical reports. In cases where a country’s national law, prevents us from representing you directly, we can represent you via proxy.

Please contact us if you need more information and/or prices.

BE AWARE OF BREXIT! If your business is established in an EU country, for example, Denmark, you may need to become registered for VAT in The United Kingdom after January 1st, 2021.

Be fully compliant after Brexit

Does Brexit have an impact on your business and the need for fiscal representation, we will handle all the paperwork and make sure that you are always in compliance with the VAT rules. By appointing us as your Danish agent or fiscal representative we ensure that:

  • You will be correctly registered
  • The VAT filings and tasks such as Intrastat, EU sales lists, and excise duties are correctly prepared and submitted
  • You will be fully compliant with local procedures and rules
  • You will be provided with professional advice and personal service and benefit from our many years of experience in the VAT field.

After more than 30 years of experience in the VAT field, we continue to offer great service and competitive pricing.

Feel free to contact us with any questions.