Fiscal representation

We offer fiscal representation throughout the EU through a single access point.

Regulation

The compulsory appointment of a VAT representative is abolished in the EU members as of 1 January 2002 following the implementation of European Council Directive 2000/65/EC. This Council Directive amends the rules applicable to the determination of who is responsible for paying the VAT due to the Tax authorities.

For certain foreign businesses that are not established, this may mean that a VAT registration is no longer required. Other foreign businesses may still be obliged to register for VAT purposes.

As of 1 January 2002 foreign businesses established in the European Union may choose, in some of the EU countries, either to appoint a local VAT representative or may opt for direct VAT registration. In the last case, they can still appoint a third party to fulfil VAT obligations.

Representation is often required for businesses not established in the countries where they have tax responsibilities due to their activities (such as Online trading, mail order, Intra EU triangular trade, local stocking and plant and machinery installation)

Non-EU businesses remain obliged to appoint a fiscal representative in the EU countries. Similarly, in most of these countries, like Switzerland, taxable persons without a business Establishment within the foreign territory are obliged to appoint for purposes of national VAT a fiscal representative that has its business establishment within such territory. The foreign taxable person has to appoint the fiscal representative by issuing a written authorisation to the fiscal representative.

Our firm

Our specialised knowledge of the VAT system means that we can deal with VAT matters for you, always keeping you informed. Providing you send us the information we require from you, we can guarantee compliance. As well as satisfying your statutory obligations, using our firm as your representative provides cost-effective peace of mind for the non-established trader.

We can take care of registering you for VAT, compiling and submitting your VAT returns, compiling and submitting your Intrastat declarations and European Sales Lists. Where compliance visits are undertaken, and we have been appointed as your representative, we will keep the relevant records, and the visits can take place at our premises.

We are dedicated to the representation of organizations for VAT and other taxes, purposes, acting as a liason between you and the Tax Authorities. As your representatives, we take care of registering you for VAT, compiling and submitting your VAT returns, filing applications for refunds in cooperation with your regular accountant or tax lawyer. Where compliance visits are undertaken, and we have been appointed as your representative, we will keep the relevant records, and the visits can take place at our premises.

We adapt our services to the different rules within the EU. For example, in The Netherlands we act as a fiscal representative with general license in intra community supplies of goods (imperative when making distance selling supplies in The Netherlands) and as a fiscal representative with restricted license in importing goods with further intra community supplies (not imperative, but lessening the administrative burden for our clients).

We also provides VAT reclaim services throughout the EU where VAT is incurred on business expenses in member states where you are not registered.

Risks

Many (European) customs brokers and forwarders offer Fiscal Representation for VAT ("VAT-Rep") as service to their customers. On many occasions the service is seen as an additional administrative service. Fees are usually not high. Risks can, however, be quite big for the VAT Representative.

What are the risks?

The obvious risk for any VAT-Rep is financial: having to pay VAT, fines and/or interest to Tax Authorities without being able to collect same from the principal.

Another risk is that in order to be able to file correct VAT returns, any VAT-Rep must have access to his principals books and records. The VAT-Rep must be aware of the VAT treatment of transactions by his principal's customers, particularly in case of ABC transactions as mentioned above.

VAT fraud in many occasions concerns intracommunity supplies to non-existing buyers, who receive the goods without reporting and paying VAT. A VAT-Rep should, always verify the VAT number of his principal's customers.

Because a VAT-Rep may also have to have a clear view of the flow of goods (and have supporting documentation available) I wouldn't want to advise any logistics provider to become VAT-Rep for a principal whose logistics are taken care of by another service provider, unless the VAT-Rep has complete access to the administration regarding the logistics operation and has satisfied himself that it is adequate and correct.