A fiscal representative helps American companies with their VAT issues


Fiscal representative? Tax is one of the most confused and complicated things in trades with the foreign country, especially European countries. European countries have different Tax setup within them. Most of the foreign companies trading with European countries need to appoint certain type of representative on behalf the company take care the entire tax related problem and to represent the company to tax authorities in European countries they also liable to the VAT liability of the company. The taxable goods and services provided y the foreign traders into the European nation must have this type of local representative to perform representing the company in tax related matters.

Tax Representative

Local tax Representative is called by the name Fiscal representative. Until 2003 there are certain rules and regulations are followed in European countries regarding appoint of the local representative by the foreign countries. If the company supplies taxable goods and services to any European countries then they required appointing the representative on behalf of the company to deals with tax authorities in respective states.

The European Union Passes a special act in 2006 to simplifies the tax procedure and gives full control to the company to directly register with the tax authorities but there are also problems in the direct VAT registration. Some countries tax offices are being reluctant to provide the basic explanation about the Tax related things and if they provide also they are mostly in the local language of the company. For example, the Spain tax offices provide the guidelines and procedure only in Spanish language and some countries like Poland urges the companies to appoint the local representative for the company.

Roles of Representative

Tax is not a simple matter and it causes several consequences if the guidelines are not followed as per their rules and regulation. So, in order to avoid these tax related problem every trading companies especially US based companies’ needs to appoint a Fiscal representative on behalf of the companies. These representatives have certain roles to play in Tax related issues and give perfect guidelines to the company for tax related issues. There are some things are carried out by these representative and they are

  • Proper Registration of the foreign trader to the local tax authorities
  • The trader must agree to the tax and other rules imposed on them by the country.
  • Maintain clear record and submit them without fail during the inspection of the tax authorities in particular country.
  •   VAT and other tax-related documents are properly prepared and submitted to the Tax Authorities.
  • This representative must handle enquires and tax inspection by the tax authorities in a professional way.

These are basic and essential requirements and roles carried out by the local representative appointed by the company. As mentioned above any problem arises regarding VAT, and then these representatives will have to submit and deal the tax authorities in a professional way. The representative must be very fluent in local language because these will help them to understand the tax rules in particular country.

Connecting Point

The Fiscal representatives are very much needed for the non-resident companies trading with any country in the European Union. There are nearly 50 countries in the European Union and they have the different set of rules, regulations, and Rates in VAT. The local representative must aware of these rules and rates of VATs. There are many good local representatives available throughout European countries but some of them are best and the best only can help the companies in tax related issues and provide the best support to the company but how to contact them and make them as the representative of the company?

Many service providers available throughout European countries to provide the good representative to the company. There are some best companies available in Europe to help the US-based companies in providing local representative that is simply because they care about the business run by US based companies. Companies like VACUE providing this kind of service in free of cost and also helps to find the perfect representative or customs agents as per the company requirements. This free cost of service is possible for them because they get all kind of financial supports from the sponsors.