What is Fiscal Representation and why it it required for your VAT?

Posted by: Jay Redman
Category: Amazon
What is Fiscal Representation Accountants for Amazon Sellers | E-Commerce Accountants UK

Only some countries require non – EU companies to appoint  a fiscal representative when registering for VAT and submitting VAT filings. Of course if your company is based within the EU, the rules are slightly different for you. In some countries it is a local requirement that you appoint a fiscal representative.

What is Fiscal Representation?

A fiscal representative is a legal body acting on your behalf taking care if your administrative obligations, managing your VAT and dealing with the Tax authorities. It allows non-EU companies to be able to trade in countries where fiscal representation is mandatory. If you do not meet the requirements of that specific country, not only you, but your fiscal representative will be held equally responsible for your liabilities. There must be only one fiscal representative acting on your behalf.

When you would need a Fiscal Representative

When you initially make the plan to start selling, importing and using warehouse facilities in the EU, you must ensure that you have appointed your Fiscal Representative. If you were to voluntarily appoint a FR there could be many mutual benefits to take advantage of.

Benefits of appointing a Fiscal Representative:

The Fiscal Representative will take care of registering your company for VAT, submitting your monthly/quarterly VAT filings (depending on the countries requirements) and calculating the VAT due to the authorities. This takes away the pain of having to complete this on your own, which can be challenging for communication if you do not speak the language of the country in which you are selling your products.

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Author: Jay Redman