BREXIT: Important notes related to the tax representative in Portugal

Brexit was formally settled on January 31, 2020, after more than three years of a long political process involving two general elections and three failed withdrawal plans. The United Kingdom (UK) is now in an eleven-month transition period with the European Union (EU) in order to ease the impact of Britain’s departure.
On December 31, 2020, the transitional period ended. As a result, it became necessary to designate a tax representative by taxpayers (natural or legal persons) with tax residence in the United Kingdom, since it no longer belongs to the European Union.

Taxpayers registered in the Portuguese Tax Authority (AT) until December 31, 2020, with tax residence in the United Kingdom, must designate a tax representative until June 30, 2021. If it is done on time, no penalty will be applicable. Please note that as long as the appointment of the representative has not been finalized, correspondence will continue to be sent to the address registered with AT.

Taxpayers registered in the AT database who are residents for tax purposes in the United Kingdom and want to declare commencement of activity must file its declaration, appointing a VAT and IRC or IRS representative (legal person or natural person respective).

It should be noted that as of January 1, 2021, taxpayers who wish to register in the AT database with a tax residence in the United Kingdom or those already registered there who wish to change their tax residence for the United Kingdom must appoint a tax representative, under penalty of refusing the change or registration request.

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