UK companies no need Italian fiscal Representative

UK companies no need Italian fiscal Representative. Since the UK’s withdrawal from the European Union was approved on 24 December, there have been a number of outstanding issues, especially in the trade field.

The UK’s exit from the European Union, also known such as “Brexit”, the writer received several questions regarding the correct one’s methods for fulfilling VAT obligations by the operators of the UK, taxable persons in Italy. In particular, the question is whether those who have a VAT representative, or a VAT ID can continue to be used for internal transactions such representative or such identification or, otherwise, must request one new VAT position as non-EU subjects.

In the area of administrative assistance in the field of VAT, they were the following forms of assistance are provided: request for information, request for information without prior request, presence in the administrative office’s participation in joint administrative inquiries, request for administrative notification, simultaneous checks. The Protocol, based on the examination of the provisions contained therein, can consider themselves substantially like the cooperation tools administrative regulations in force in the EU. This circumstance allows to continue to apply the provisions contained herein to taxable persons in the United Kingdom in article 35-ter, paragraph 5, of the VAT decree (see resolutions of 5 December 2003, n. 220 / E and of 28 July 2020, n. 44 / E).

However, taxable persons established in the UK can access the direct identification institution in order to fulfill the obligations and exercise the rights regarding VAT in Italy, as an alternative to the appointment of a tax representative pursuant to Article 17, paragraph 2, of the VAT decree. It is understood that UK operators who already have in Italy of a VAT tax representative or a VAT ID, nominated or issued prior to January 1, 2021, they can continue to use it for internal operations.

One of these points concerned VAT obligations: specifically, the new directives on direct identification and the appointment of a tax representative. In Italy, a resolution to this issue was issued by the Tax Authority on 1 February.

Direct Identification for VAT purposes is a fulfillment that foreign companies that operate in Italy towards private customers usually have to resort to (the case of e-commerce, Amazon, Ebay, etc.). A particular mention is made for companies that carry out indirect E-commerce activities in Italy and exceed the threshold for direct identification in our country. To adopt this system, it is necessary to identify directly (article 35-ter of Presidential Decree 633/1972), presenting the model before carrying out any territorially relevant operation in Italy.