How a Tax Representative Helps You Stay VAT Compliant Across Borders

There is no denying that selling across borders opens up new revenue streams. However, it also exposes your business to a maze of tax rules, deadlines, and reporting obligations. In particular, VAT compliance can become one of the most time consuming and error prone aspects of international trade. 

Each country may have its own filing frequency, document requirements, and even language barriers when dealing with tax authorities. If you're based outside the EU and plan to sell into Europe, your responsibilities don't stop at registering for VAT. You may also need to:

• File monthly or quarterly VAT returns in local languages.

• Respond to tax authorities' inquiries.

• Maintain proper invoicing and digital records.

• Pay VAT in full and on time (sometimes even prepaying it at the border).

This is where things get complicated. As a non resident seller, you can’t always interact directly with foreign tax offices. In fact, in several countries, you’re not even allowed to register for VAT unless you appoint a local expert.

Did you know that appointing a tax representative is legally required in several EU countries? Countries like France, Italy, Spain, and Poland make this mandatory for non EU businesses.

A tax representative is your solution. They're more than just a go between. They ensure your VAT obligations are handled accurately and locally, so you don’t risk fines, blocked shipments, or reputational harm.

What Is a Tax Representative?

When selling into foreign markets (especially within the European Union), businesses face a host of local tax rules they must comply with. For non EU companies or businesses, one of the most important requirements is appointing a tax representative.

A tax representative is a local entity or individual authorized to act on your behalf for VAT purposes in a specific country. This representative handles essential VAT tasks so that your business remains fully compliant. These VAT tasks include but are not limited to registration, filing returns, communicating with tax authorities, and maintaining records.

Why This Matters for Non EU Sellers

As a non EU seller, you often can’t interact directly with certain EU tax offices. You may not even be allowed to register for VAT in a country unless you appoint a tax representative. This requirement is based on the EU VAT Directive (Directive 2006/112/EC), which allows Member States to require non established businesses to appoint a local tax representative.

That means if you’re shipping goods to customers in France, Italy, Spain, or Poland among others, you may not be able to legally trade or reclaim VAT without this local intermediary.

At Global Trade Business, we help international sellers by providing approved tax representatives in countries where it’s legally required, and optional representation where it’s simply helpful.

Tax Representative vs. Fiscal Representative: What's the Difference?

These terms are sometimes used interchangeably. However, there is a subtle difference especially in the EU.

• A fiscal representative is typically required in EU countries where the representative shares liability for your VAT debts. For example, in France, Italy, and Spain, the fiscal representative is jointly and severally liable with the non EU business.

• A tax representative may refer more broadly to any entity authorized to manage a company’s tax affairs locally, even in countries where liability is not shared.

At Global Trade Business, we provide both services depending on the specific rules of each jurisdiction. Whether the country mandates a fiscal representative or simply allows tax representation, we ensure your VAT obligations are handled in full.

When Do You Need a Tax Representative?

You likely need a tax representative if you're:

• Selling physical goods from a non EU country to EU consumers.

• Using fulfilment centres like Amazon FBA within the EU.

• Importing goods into the EU for resale.

• Registering for the IOSS (Import One Stop Shop) or OSS (One Stop Shop) schemes.

• Operating in countries where local rules mandate representation for non resident traders.

Some EU countries where tax representation is mandatory include France, Italy, Spain, Greece, Poland, and Portugal.

Even if not required, many businesses choose to appoint a representative voluntarily to simplify processes and ensure nothing is missed.

Key Responsibilities of a Tax Representative

Appointing a tax representative is more than a legal formality. It’s a practical necessity for staying compliant, avoiding penalties, and keeping your goods moving across borders. Your representative takes over complex, country specific VAT tasks that you can’t easily handle from abroad.

At Global Trade Business, we act as your in country expert, ensuring nothing falls through the cracks. Here's what that involves:

1. VAT Registration and Filings

Before you can collect or pay VAT in many countries, you need to register for a local VAT number. Your tax representative handles this entire process by:

• Preparing and submitting your VAT registration application.

• Ensuring required documents (business license, power of attorney, etc.) meet local standards.

• Liaising with tax offices to get your VAT number issued quickly.

• Setting up your filing schedule (monthly, quarterly, or annually).

After registration, your representative ensures VAT returns are filed on time with the correct data so you don’t face late fees or compliance issues.

At Global Trade Business, we manage end to end VAT registration and reporting in over 30 jurisdictions. 

2. Record Keeping and Invoice Validation

Tax authorities often request detailed documentation to validate your filings. That’s why your representative is responsible for:

• Keeping accurate records of all sales, purchases, imports, and exports.

• Storing invoices and customs documents according to each country’s legal retention period (usually 5–10 years).

• Making sure your invoices meet local formatting and language rules.

For example, in some EU countries, invoices must show specific VAT codes, registration numbers, or country specific terminology. Getting this wrong can result in rejected deductions or delays during audits.

3. Communication with Tax Authorities

Dealing with foreign tax offices can be challenging especially when they don’t speak your language or accept overseas calls. Your tax representative serves as your local contact point, handling:

• Notices and letters from tax authorities.

• Requests for clarifications or additional documentation.

• Responses during VAT verifications or desk audits.

• Clarifying tax treatment of specific transactions.

With Global Trade Business as your representative, you’ll never have to interpret a foreign language tax notice on your own. We translate, respond, and resolve quickly and professionally.

4. Managing Audits and Investigations

Even if you do everything right, tax audits happen. A tax representative provides immediate support when authorities conduct a:

• Desk audit (document review).

• Field audit (on site inspection at your warehouse or fulfilment centre).

• Cross border investigation (checking VAT consistency across countries).

We work directly with tax officers to present records, clarify filings, and resolve discrepancies. This minimizes the risk of fines, reassessments, or registration suspension.

5. Liability for Unpaid VAT (in Some Jurisdictions)

In certain countries, your tax representative is jointly liable for your VAT debts. This means if VAT is unpaid, the tax authority can pursue your representative to recover the amount.

Examples of countries with shared liability rules include:

• France

• Italy

• Spain

• Portugal

That’s why authorities only approve experienced and compliant representatives. They need to trust the person or firm taking on this responsibility.

At Global Trade Business, we take this seriously. We maintain robust due diligence processes and only work with businesses that are committed to staying fully VAT compliant.

Benefits of Having a Tax Representative

Appointing a tax representative isn’t just about meeting legal obligations, no. It’s a proactive step toward protecting your business and improving how you operate across borders. At Global Trade Business, we’ve seen firsthand how the right representative can reduce risk, save time, and help international sellers scale faster and more confidently.

Here’s how you benefit from a tax representative.

1. Compliance Assurance Across Multiple Jurisdictions

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When trading across Europe (or globally), each country has its own tax deadlines, filing formats, invoice language requirements, and rules for reclaiming VAT.

A tax representative:

• Ensures you’re registered correctly in every country where you sell.

• Submits VAT returns on time and in the right format.

• Helps you meet invoicing and record keeping standards.

• Monitors local regulatory changes and keeps you updated.

With Global Trade Business, you get one point of contact for multiple markets. Whether you're expanding into France, Italy, or Germany, we streamline compliance in each country, so you don’t have to build local expertise from scratch.

2. Reduced Risk of Fines, Audits, and VAT Underpayment

VAT errors can be costly. Filing late, submitting incorrect returns, or underpaying VAT (even unintentionally) may result in:

• Late penalties.

• Interest charges.

• Blocked imports or customs delays.

• Increased likelihood of a full audit.

With a tax representative:

• You avoid common mistakes made by non resident sellers.

• You reduce exposure to fines caused by misunderstandings of local law.

• You have an expert reviewing your numbers before submission.

• Local Expertise on Ever Changing Tax Laws

VAT rules in the EU and beyond are constantly evolving. Whether it's digital invoicing mandates, new reporting thresholds, or post Brexit changes in cross border trade, you simply can’t keep up on your own.

A tax representative provides:

• Up to date knowledge of each country’s regulations.

• Immediate translation of tax office communications into plain English.

• Strategic guidance on cross border transactions, reverse charge mechanisms, and VAT exemptions.

At Global Trade Business, we monitor legislative updates across all key jurisdictions, so you don’t have to. We also alert you to changes that could affect your filing or invoicing practices.

4. Operational Continuity During Tax Reviews or Document Checks

If you receive a notice from a tax authority requesting clarification, sales records, or import documentation, your operations can slow to a halt. In some cases, your VAT registration may even be suspended until the issue is resolved.

Your tax representative steps in to:

• Respond to tax authorities on your behalf.

• Provide necessary records and explanations quickly.

• Help you stay in good standing during and after audits.

• Prevent disruptions to your cash flow or product delivery.

Think of your tax representative as your local legal firewall. They ensure your business continues to operate while any issues are quietly resolved in the background.

Why Choose Global Trade Business?

Many tax representatives only fulfill minimum legal obligations. At Global Trade Business, we go further by:

• Covering 30+ jurisdictions with a single point of contact.

• Offering strategic VAT advice as you scale.

• Acting as both tax and fiscal representative where needed.

• Supporting eCommerce sellers, B2B exporters, SaaS providers, and more.

We treat your compliance like it's our own, because it is.

With Global Trade Business, you don’t just get a tax representative. You get a trusted partner who helps you stay compliant, avoid penalties, and expand with confidence.

We’re already helping clients in over 30 countries manage VAT obligations in the EU, UK, Australia, Singapore, and more.

If you're unsure whether you need a tax representative, or if you're already managing VAT and looking to simplify, we’d love to help.

Request a call or send us a message today. Let’s make cross border trade less complicated and more profitable for your business!