What is Fiscal Representation: The Ultimate FAQ Guide

What is Fiscal Representation

A Fiscal representative is a VAT agent specializing in helping foreign companies with VAT registration in respective countries where they are needed.

Generally, the fiscal representative is responsible for reporting VAT and correct VAT calculations for their clients.

VAT

VAT

How Does Fiscal Representation Operate?

The fiscal representative usually operates on the following steps;

  • Step 1: Background check
  • Step 2: Bank guarantee
  • Step 3: VAT registration
  • Step 4: Paying your VAT bills
  • Step 5: The monthly compliance check
  • Step 6: Payment for fiscal representation

Who Requires A Fiscal Representative?

You will require a fiscal representative if you want or are currently trading in a country in which you are not a resident or have no establishment.

What Is The Role Of The Fiscal Representative?

Some of the duties for a fiscal representative include;

  • To deal with local VAT registration
  • Regulatory watch
  • To audit physical and invoicing flows
  • To manage the VAT declarations and intrastate
  • To do a monthly report
  • Assist in fiscal and custom inspections
  • To design optimized solutions
  • They do Act as technical consultants in accounting compliance and processing.

What Is The Cost Of  A Fiscal Representative?

The fiscal representative cost varies. We charge the representation per annum. You can contact the customer care team via our website for more details.

Which Countries Do You Need A Fiscal Representation?

We do have some of the countries below that will need a fiscal representative, which includes;

  • Germany
  • Belgium
  • Netherlands
  • Hungary
  • Portugal
  • Slovakia
  • Sweden
  • Slovenia
  • Croatia
  • Bulgaria
  • Finland
  • Denmark
  • Greece
  • Australia

What Do You Mean By VAT Fiscal Representative?

VAT fiscal representative is a local entity that generally represents a company in a foreign country by correctly calculating and filling the tax business. They also have a duty of 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, and generally, they represent a non-resident business concerning all services for which they register their business for VAT in their names.  Furthermore, they also help in the customs process, tax calculation, and filing tax returns annually for a company.

Limited Fiscal Representative

Limited fiscal representation is also known as LFR. It only represents foreign or no residents’ companies’ importers who bring goods into one EU member state.

At the same time sale, the goods in other EU members state to import without paying any value-added tax at the time of goods importation.

Does Online Market Require A Fiscal Representation?

Yes, the online market will also need a fiscal representative so long as you want to trade in a foreign country that will require a fiscal representative.

VAT is paid by both the online and physical business, which is stated by the law.

What Are Some Of The Benefits Of A Fiscal Representative?

Having a fiscal representative is one of the best decisions you may ever make since they come with the following benefits;

  • The fiscal representative will smoothly register your business with the local office for VAT.
  • They help you in the submission of your VAT returns
  • They efficiently process your VAT payments

What Is The Similarity Between Fiscal Representation To General Fiscal Representation?

There is no any similarities between Fiscal representative and general fiscal representative. They are both the local entity that generally represents all foreign business to register their companies for VAT.

How Long Will It Take To Change My VAT Registration To Fiscal Representative?

Fiscal representation

Fiscal representation

Okay, the change of your VAT registration to a fiscal representative will take a few weeks. But as the Brexit deadline approaches, we will expect the change to take longer.

The local tax authorities usually receive a bigger number of requests, so we advise you to plan ahead of time.

Does Additional VAT Reports Being Affected By Fiscal Representation?

No, the additional reports will not have any effect on fiscal representation. But you have to note that once the transition period ends, VAT transaction treatment will likely change.

This may affect the possible requirement for additional declarations, which may be thoroughly reviewed as we get closer to 1st January.

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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