Brexit: all you need to know about tax representation in Portugal

Following the withdrawal of the UK from the EU and the end of the transition period, individuals – individuals or legal persons – who are tax residents in the UK and have a Portuguese taxpayer number as non-resident need to proceed with the appointment of a tax representative in Portugal

In this context, please find below a description of the process relating to the appointment of a tax representative:

I. Individuals

A) Individuals who were tax residents in the UK at the time they obtained a Portuguese taxpayer number

Individuals who were tax residents in the UK at the time they obtained a Portuguese taxpayer number need to appoint a tax representative in Portugal until 30.06.2021, which can be done without any penalty.

Until 30.06.2021 or until the appointment of the tax representative (if earlier) all tax notifications will continue to be sent to the current address in the UK.

How to appoint a tax representative

Individuals may appoint a tax representative through one of the following ways:

a) by accessing their personal page at the Portuguese tax authorities’ website (Portal das Finanças):

• Todos os serviços > Dados Cadastrais > Representante > Entregar Nomeação > Select IRS / IRS e IVA, should the individual undertake a professional activity in Portugal;

 b) by means of presentation of a proxy by the future tax representative:

• In this case, the tax representative shall present a proxy, through “e-balcão” (the Portuguese tax authorities electronic service);
• In order to do so, the tax representative shall access “e-balcão” and select the following options:

– In case the individual does not undertake a professional Activity in Portugal: Imposto ou área > Registo de Contribuintes > then at “Tipo de questão” > Atividade > and in “Questão” > Representante IVA/IRC/Cess.

– In case the individual undertakes a professional activity in Portugal: Imposto ou área > Registo de Contribuintes > then at “Tipo de questão” > Identificação > and in “Questão” > Representação Fiscal

c) at the Tax Authorities’ office

•  both the non-resident individual and the tax representative may, respectively, appoint and accept the appointment at the tax authorities’ office, although the tax representative may, alternatively, execute this appointment and accept it upon presentation of the proxy.

B) Individuals who become now tax residents in the UK

Foreign individuals who become tax residents in the UK need to proceed with the appointment of a tax representative under the general terms, i.e., right after changing their tax residency to the UK.

Portuguese citizens who become tax residents in the UK need to proceed with the change of their address on their Citizenship Cards and need to appoint a tax representative using one of the aforementioned processes.

II. Legal person

A) Entities who were already tax residents in the UK

The appointment of the tax representative can be done:

a) by accessing the entity’s page at the Portuguese tax authorities’ website (Portal das Finanças):

• Todos os serviços > Dados Cadastrais > Representante > Entregar Nomeação > Select “IVA e IRC”.

b) by means of presentation of a proxy by the future tax representative:

• In this case, the tax representative shall present a proxy, through “e-balcão” (the Portuguese tax authorities electronic service);

• In order to do so, the tax representative shall access “e-balcão” and select the following options:

– In case the entity does not undertake an activity in Portugal: Imposto ou área > Registo de Contribuintes > then at “Tipo de questão” > Atividade > and in “Questão” > Representante IVA/IRC/Cess.

– In case the entity undertakes an activity: Imposto ou área > Registo de Contribuintes > then at “Tipo de questão” > Identificação > and in “Questão” > Representação Fiscal

c) at the Tax Authorities’ office

•  both the non-resident entity and the tax representative may, respectively, appoint and accept the appointment at the tax authorities’ office, although the tax representative may, alternatively, execute this appointment and the accept it upon presentation of the proxy.

B) Entities who become tax residents in the UK

Entities which become tax residents in the UK need to appoint a tax representative upon changing their tax residency

III. Final Note – Statement of Beginning of Activity

Taxpayers who have their tax residency in the UK, who do not have a tax representative and who intend to submit their statement of beginning of activity shall, alongside with its submission, appoint a tax representative for the purposes of VAT and CIT/PIT (depending on the taxpayer – natural or legal person).

In both cases, the statement of beginning of activity may be submitted through “e-balcão”: Imposto ou área > Registo de Contribuintes > then at “Tipo de questão” > Atividade > and in “Questão” > Entrega início/Alter. / Cess.

Please note that the tax representative, besides having a proxy for the purposes, needs to be tax resident in Portugal and subject to VAT.

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