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Reis & Pellicano International Lawyers

Fiscal Representation and Brexit  

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Posts: 29
Community Member
(@cabanastavira)
Eminent Member
Joined: 7 months ago

We own an apartment in Portugal but are non-resident. Our fiscal address is therefore in the UK. We did away with a fiscal rep some years ago and currently pay IMI directly. We are aware that non-EU citizens must have fiscal representation. However, the AAT website says 'Implicações no registo dos contribuintes após a saída do Reino-Unido da União Europeia, em caso de não-Acordo'

https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/Brexit/Registo_de_Contribuintes/Paginas/default.aspx

So, three questions:

1 Does anyone know if there is an agreement for UK citizens post-Brexit?
2 Can anyone with a fiscal address in Portugal act as a Fiscal Representative for us and save us paying a professional their fee?
3 Why do you need a fiscal representative if you pay IMI by direct debit?

We are anticipating advice from our Portugal based solicitor. When he gets back to us I will update this thread.

Thanks in anticipation.

7 Replies

Posts: 1564
VIP Member
(@old-bloke)
Noble Member
Joined: 12 years ago

1 - Not as far as I'm aware.

2 - Yes.

3 - In case you don't pay, fines are easily enforceable throughout the EU, the UK leaving means that process would be a lot more costly and bureaucratic and probably not cost effective to Finacas to enforce. Having a fiscal rep means they are responsible for any payment and fine.

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Posts: 4
Community Member
(@smurf)
New Member
Joined: 4 weeks ago

@cabanas tavira 

I am in a similar situation, I live in the U.K. and my IMI bills are sent to my home in the U.K. and I pay online . 
I am in the process of appointing my Portuguese Layer to be my Fiscal Representative beginning Jan 1 2021, as the U.K. will no longer be classed an EU member state, and the ability to do as both you and I currently do Willie could be withdrawn, as we will be classed as a third country resident. 
As yet, as far as I’m aware there has been no official statement to say IMI bills will still be sent to a U.K. address, and as we are fast approaching the 31 December, I’ve taken the steps to follow the advice my lawyer has given me. 

you don’t need a layer to be your Fiscal Representative, just someone resident in Portugal, who will get your bills and pay them promptly to avoid fines. Obviously this needs to be someone you can trust to do this efficiently. 

hope this has been helpful 

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2 Replies
Community Member
(@cabanastavira)
Joined: 7 months ago

Eminent Member
Posts: 29

@smurf
Hi
Thanks for that. Yes, we are in the same boat! Our lawyer has not, to date, clarified the situation post 31 Dec
I am tempted to set up a direct debit and ask a good Portuguese friend to be our Fiscal Rep.
Let's keep in touch and share notes going forward.
Cheers

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Community Member
(@smurf)
Joined: 4 weeks ago

New Member
Posts: 4

@cabanastavira I appointed my lawyer as my Fiscal Rep today. I own a house in Portugal but am not tax resident, I have no income earned in Portugal, I do not rent out my house, my  lawyer says no definitive answer has been given as yet, as to whether IMI bills will continue to be sent to U.K. residences ( ie habitual residence) but should that be the case I am welcome to cancel the Fiscal Representation. I’ve decided, regardless of what happens, I will stay with Fiscal Representation for now. It was a simple matter of providing a utility bill with my U.K. address, and signing a form declaring that for Fiscal purposes my lawyer is my representative. 
hope this helps

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Posts: 1564
VIP Member
(@old-bloke)
Noble Member
Joined: 12 years ago

It matters not whether Financas will post bills to the UK, the need for a fiscal rep is stipulated in Article 19 of the General tax law (398/98).

Article 19

Tax domicile

1 - The tax domicile of the taxable person is, unless otherwise specified:
a) For natural persons, the place of habitual residence;
b) For legal persons, the location of the head office or effective management or, failing these, of their permanent establishment in Portugal.
2 - The tax domicile also includes the electronic tax domicile, which includes the public service of electronic notifications associated with the unique digital address, as well as the electronic mailbox, under the terms provided for in the public service of electronic notifications associated with the unique digital address and in the service public electronic mailbox.
3 - It is mandatory, under the terms of the law, the communication of the domicile of the taxpayer to the tax administration.
4 - The change of address is ineffective until it is communicated to the tax administration.
5 - Whenever a taxable person's residence status is changed, he must communicate, within 60 days, such change to the tax administration.
6 - Taxable persons residing abroad, as well as those who, although residing in the national territory, are absent from it for a period exceeding six months, as well as legal persons and other legally equivalent entities that cease their activity, must, for tax purposes , designate a representative with residence in the national territory.
7 - Regardless of the applicable sanctions, the exercise of the rights of taxable persons referred to therein before the tax administration, including those of claim, appeal or challenge, depends on the designation of a representative under the terms of the previous paragraph.
8 - The provisions of the preceding paragraph are not applicable, and the appointment of a representative is merely optional, in relation to non-residents of, or residents who are absent to, member states of the European Union or the European Economic Area, in the latter case provided that that member state is linked to administrative cooperation in the field of taxation equivalent to that established within the European Union.
9 - The representative may waive the representation in general terms, by means of a written communication to the represented, sent to the latter's address.
10 - The waiver becomes effective in relation to the Tax and Customs Authority when communicated to it, and the latter must, within 90 days of such communication, make the necessary changes, provided that at least one year has elapsed since the appointment or has new fiscal representative has been appointed.
11- The tax administration may unofficially rectify the tax domicile of taxable persons if this arises from the elements at its disposal.
12 - Taxpayers of corporate income tax with head office or effective management in Portuguese territory and permanent establishments of companies and other non-resident entities, as well as resident taxpayers who fall under the normal value added tax regime, are required to have an electronic mailbox, under the terms of paragraph 2, and to communicate it to the tax administration within 30 days from the date of commencement of activity or the date of commencement of the normal tax regime. the added value, when it occurs by alteration.
13 - The Minister of Finance regulates the mandatory regime for electronic tax domicile of taxable persons not referred to in paragraph 9, by decree.
14 - The obligation to designate a tax representative or to join the electronic mailbox is not applicable to taxable persons who have joined the public service of electronic notifications associated with the unique digital address, except as provided for legal persons or other legally equivalent entities that cease activity.
15 - The cancellation of the subscription to the public service of electronic notifications associated with the unique digital address, in relation to natural and legal persons resident outside the European Union or the European Economic Area, only takes effect after the prior appointment of a fiscal representative.
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Posts: 29
Community Member
(@cabanastavira)
Eminent Member
Joined: 7 months ago

Thanks for the replies. So two more questions:
Where on the ATT website do you set up a direct debit to pay IMI?
How do you apoint a 'friend' to be your Fisacl Representative?

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