What is a Fiscal Representation?
Fiscal representatives are entities registered with tax authorities that handle administrative obligations, VAT affairs, and communicate with tax authorities on your behalf. This service is essential for non-EU companies that wish to trade in countries where fiscal representation is mandatory.
Key points:
- Role of Fiscal Representatives: They manage VAT affairs and ensure compliance with local tax laws in the country of representation.
- Mandatory in Some Countries: Fiscal representation is required for non-EU businesses to legally trade in certain countries. It allows these companies to handle VAT obligations as if they were local businesses.
- Benefits: It offers VAT and cash flow advantages for businesses in countries where fiscal representation is not mandatory, making it easier for foreign companies to manage their VAT affairs.
- Requirements: To qualify as a fiscal representative, the entity must meet specific legal and financial requirements. These may vary by country, but generally, a fiscal representative must:
- Provide financial security.
- Be based in the country in question.
Fiscal representation allows companies to operate smoothly within local tax systems and avoid penalties for non-compliance.
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verified - 22.01.2025 - EA
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