A Fiscal representative is a VAT agent specialized in assisting foreign companies with VAT registration in the respective countries where it is required. Their primary responsibilities include reporting VAT and ensuring accurate VAT calculations for their clients.
How Does Fiscal Representation Operate?
The fiscal representative typically follows these steps:
- Step 1: Conducting a background check.
- Step 2: Arranging a bank guarantee.
- Step 3: Handling VAT registration.
- Step 4: Managing the payment of VAT bills.
- Step 5: Conducting monthly compliance checks.
- Step 6: Processing payment for fiscal representation services.
Who Requires A Fiscal Representative?
If you intend to trade in a country where you are not a resident or do not currently have any establishment, you will need a fiscal representative.
What Is The Role Of The Fiscal Representative?
Some of the duties of a fiscal representative include:
- Handling local VAT registration.
- Keeping track of regulatory changes and compliance.
- Auditing physical and invoicing flows.
- Managing VAT declarations and intrastate transactions.
- Preparing monthly reports.
- Assisting in fiscal and customs inspections.
- Designing optimized solutions for clients.
- Acting as technical consultants for accounting compliance and processing.
What Is The Cost Of A Fiscal Representative?
The cost of a fiscal representative varies, and we charge it on an annual basis. For more details, you can reach out to our customer care team through our website.
Which Countries Do You Need A Fiscal Representation?
Below are some of the countries where a fiscal representative will be required:
- Germany
- Belgium
- Netherlands
- Hungary
- Portugal
- Slovakia
- Sweden
- Slovenia
- Croatia
- Bulgaria
- Finland
- Denmark
- Greece
- Australia
What Do You Mean By VAT Fiscal Representative?
A VAT fiscal representative is a local entity that typically acts on behalf of a company in a foreign country by accurately calculating and filing tax returns. Additionally, they are responsible for providing monthly tax reports.
How Do You Compare A Limited Fiscal Representation (LFR) VS A General Fiscal Representation (GFR)?
General Fiscal Representation
It is also known as GFR (General Fiscal Representative), and their primary role involves representing a non-resident business in all matters related to VAT registration, often registering the business for VAT in their own name. Additionally, they assist with customs processes, tax calculations, and annual tax return filings for the company.
Limited Fiscal Representative
Limited fiscal representation, also known as LFR, exclusively represents foreign or non-resident companies that import goods into one EU member state and subsequently sell these goods in other EU member states without paying any value-added tax at the time of importation.
Does Online Market Require A Fiscal Representation?
Indeed, online businesses will also require a fiscal representative if they intend to trade in a foreign country that mandates the use of a fiscal representative.
According to the law, both online and physical businesses are required to pay VAT.
What Are Some Of The Benefits Of A Fiscal Representative?
Having a fiscal representative is one of the best decisions you can make, as they offer the following benefits:
- Smooth registration of your business with the local office for VAT.
- Assistance with the submission of your VAT returns.
- Efficient processing of your VAT payments.
What Is The Similarity Between Fiscal Representation To General Fiscal Representation?
There are no similarities between a Fiscal Representative and a General Fiscal Representative. Both serve as local entities representing foreign businesses for their VAT registration.
How Long Will It Take To Change My VAT Registration To Fiscal Representative?
Fiscal representation
Fiscal representation requires a change in your VAT registration, which usually takes a few weeks. However, as the Brexit deadline approaches, we anticipate that the process might take longer due to the higher number of requests received by local tax authorities. We advise you to plan ahead and initiate the change in advance to avoid any potential delays.
Does Additional VAT Reports Being Affected By Fiscal Representation?
No, the additional reports will not impact fiscal representation. However, it is essential to be aware that once the transition period ends, there might be changes in the treatment of VAT transactions.
This could potentially lead to the need for additional declarations, and as we approach January 1st, these requirements will be thoroughly reviewed and assessed.
For Reclaiming A VAT Occurred In EU Under 13the Directive Claims Do You Need A Fiscal Representative?
Generally, the documentation needed might significantly vary. VAT recovery under the 13th directive claims to some member states may require a fiscal representation.
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