Understanding Fiscal Representation

David Rae

After the Brexit transition period ends, VAT and possibly duty will be payable on each shipment between the UK and the EU.

These taxes are usually paid by the importer in the shipment’s destination country (based on the Incoterms DAP or FCA).

>> UK to EU exports, taxes paid in the EU <<

>> EU to UK imports, taxes paid in the UK <<

Sometimes, an exporter decides to handle the whole door-to-door process themselves – including paying the taxes in the importing country – using the Incoterm DDP.

In order to do that, they would normally need to appoint a fiscal representative in the shipment’s destination customs territory – for example, sending a shipment to Italy would require a fiscal representative based in the European Union.

The fiscal representative is able to pay VAT and duty on behalf of the customer.

For example…

Different European countries have different approaches to Fiscal Representation. Here at Baxter Freight, our experts can help you arrange fiscal representation for your European shipments and explain exactly what you need to do.

Get in touch with our in-house Brexperts today on 0115 975 0400 or email brexit@baxterfreight.com

David Rae

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