If you are selling either products or services to a Portuguese company, they may ask you to complete a Mod 21-RFI form prior to being able to pay you the total amount they owe you.
If you are have concerns, difficulties or queries with regards to this, do not worry, we have got you covered!
The Mod 21-RFI form has been developed in response to the Portuguese tax authorities who sometimes insist that Portuguese companies withhold 25% of the payment whilst they are paying invoices submitted by British companies which have sold them goods or services.
In order to avoid this, the Mod 21-RFI document is a confirmation that the British company is UK-based and thus pays its taxes in the UK, ultimately providing the Portuguese Tax Authorities with all necessary information regarding your company.
If a Portuguese company has asked you to provide them with a Mod 21-RFI document for them to be able to remit the full payment, please proceed accordingly:
- Download the document;
- Send the completed document to HMRC in order for it to be adequately stamped;
- Ask HMRC to provide you with a Certificate of Residence (1 year validity);
- Send the completed and stamped form alongside a copy of your Certificate of Residence to:
Corporation Tax Services
HM Revenue and Customs