Do you need to appoint a fiscal representative?

Many EU countries, including France, Italy, Spain, Poland and Belgium, require non-EU companies to appoint a local fiscal representative when they register for VAT, although others, such as Germany and Ireland, do not, and some countries waive the requirement for businesses established in countries with a tax mutual assistance agreement.

When Do You Need to Appoint a Fiscal Representative?

There are a lot of companies who do not know exactly when they need to appoint this representative. In practice, the obligation arises when your business must register for VAT in a country that requires fiscal representation, for example because you import goods, store stock or make local sales there. The process of becoming VAT registered is complicated and can be really expensive. It is definitely not worth the risk to do it by yourself, if you are new on the market or just want to save money. We recommend checking the rules of each country before your first taxable transaction there, so that a fiscal representative can be appointed in time where one is required.

However, if you need a VAT number in a country that requires fiscal representation (such as France, Italy or Spain), you must appoint a fiscal representative when you register, which can be before you make any sales, for example when you first import goods there. A fiscal representative files VAT returns and other declarations on your behalf and, in many countries, is jointly liable with you for the VAT due, which is why a guarantee is often requested. It is important that companies with no prior experience in VAT procedures are not left alone when it comes to ensuring they comply with requirements. Separately, a non-EU business that wants to use the Import One Stop Shop (IOSS) for consignments worth up to €150 must generally appoint an EU-established intermediary. A professional company with extensive knowledge of how these systems work can ease this procedure which is sometimes quite complicated for those who have never been through it before.

Talk to one of our experts to see how we can help you with fiscal representation.

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