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A British company has enquired whether it must appoint a tax representative to operate in Spain following Brexit. The DGT has ruled that, as the United Kingdom is a third country, the obligation to appoint a representative remains in place unless mutual assistance instruments analogous to those within the European Union exist.
Question raised: Necessity of appointing a tax representative for Value Added Tax purposes.
Business operators established in the United Kingdom who carry out transactions subject to VAT in the Peninsula and the Balearic Islands and are taxable persons must appoint a representative to comply with the obligations of Law 37/1992. This obligation persists unless there are mutual assistance instruments analogous to those of the Community with the United Kingdom, which is not considered to occur under the Withdrawal Agreement.
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