As of 1 January 2021, the United Kingdom is treated as a third country in business relations with the European Union. What this means is that any British entrepreneur who performs transactions subject to VAT in Poland and therefore wants to register for VAT purposes in Poland, must appoint a tax representative. However, changes are on the way.
The Ministry of Finance is working hard on a draft regulation releasing UK companies from the obligation to appoint a tax representative. This solution is possible under a trade agreement concluded between Poland and the United Kingdom, which sets out legal instruments for administrative cooperation. The goal of the draft is to make it easier for entrepreneurs from the UK to conduct business in Poland. What is interesting, the Minister of Finance has decided to grant this exemption to entrepreneurs from Norway as well.
The assumption in the draft is that the discussed exemption takes effect starting from 1 January 2021. Yet, the draft is now at the stage after external consultation, so its wording may still change.
We are monitoring the progress of the regulation and will keep posting updates on our website.
Should you have any questions or need to discuss the topic further, please contact our expert, Przemysław POWIERZA:
tel. +48 61 8515 766
fax +48 61 8515 786
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