Fiscal Representation

Where a company is required to be registered for VAT in another country as a result of its business activities, it may be necessary to appoint a local tax representative.

The fiscal representative will usually be jointly and severally liable for the VAT owed by the business. Several countries in Europe require the appointment of a local representative to act for non EU companies who have an obligation to register for VAT.

There is no requirement for EU businesses to appoint a tax representative when obtaining a ‘VAT Registration’ in another EU Member State. However, many EU Member States do require non-EU businesses to appoint a tax representative when registering for VAT locally. Equally, a tax representative for VAT is necessary when there is a requirement for a non-resident business to be registered for VAT in many countries outside of the EU.

The selected Member Firms of amavat^® offer tax representation services across Europe and beyond, so that your business is compliant with local VAT obligations.

The ‘Fiscal Representation’ services of the amavat^® selected Member Firms include the following:

• Ensuring ‘VAT Compliance’ with local fiscal laws,
• Ensuring your business complies with local rules on invoicing, VAT treatment, accounting procedures and VAT filing and payments,
• Handling enquiries and tax inspections from the local VAT office.

The tax authorities regard a ‘Fiscal Representative’ as the local agent of the foreign trader – which leads to several compliance obligations. Furthermore, since the ‘Fiscal Representative’ is jointly liable for the trader’s taxes, it is industry practice to require a security deposit or bank guarantee in favour of the ‘Fiscal Representative’ to mitigate against potential risks if the company reneges of any liabilities.