What is Fiscal Representation?

What is fiscal representation?

A foreign entity can appoint a tax representative in the import country to represent their business with the Tax and Customs Administrations. If you do engage a tax representative then generally you will not be obliged to register yourself as a taxpayer for VAT purposes. There are two types of fiscal representation, General and limited. In very few EU member states (NL is an example) Customs forwarding agents sometimes act as limited fiscal representatives. The (limited) fiscal representative can take care of completing VAT returns and can (where applicable) apply the reverse-charge mechanism on import or postponed VAT accounting.

When do you need a fiscal representative?

You typically need one when your company is established outside the EU and wants to import goods into a member state without registering for VAT itself. Requirements and the type of representation allowed vary by country, so check the local rules first. A representative may share liability for the VAT filed on your behalf, and fees vary by provider, so choose carefully.

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