Fiscal representation, an essential requirement for entering the European market


Fiscal representation, an essential requirement for entering the European market

You have a company established outside the European Union and you want to sell and/or store your goods in one of the european member countries? You can either appoint a fiscal representative ot a tax agent according to different criteria established by the tax authorities. In this article, we will explain what a fiscal representative is, who needs one and why. If you still have any question, please do not hesitate to contact us by clicking here.


Who is a fiscal representative and what is his role?

A fiscal representative is in charge of carrying out all the formalities related to tax compliance of foreign companies. This role is very important because the fiscal representative engages his responsibility towards the tax authorities.

He takes care of the registration of the foreign company in the country where the goods are sold. He also applies for a VAT number which allows the company to declare taxable operations as well as an EORI number which is a unique identification number with the customs service. Once the company is registered, the fiscal representative files the corresponding VAT déclarations and provides assistance and advice if needed.

Which companies are concerned by the appointment of a fiscal representative?

The representation is mandatory for foreign companies that are not established in the EU or in a country without a tax treaty that are performing operations taxed in one of the EU Member states. They are indeed obliged to appoint a fiscal representative for all taxable operations, in particular for imports and exports of goods.

Companies established in EU countries or in a country that has concluded a tax treaty with the country of destination of the goods, are not obliged to appoint a fiscal representative. Nevertheless, they may appoint a tax agent if they wish in order to perform all the administrative formalities related to VAT for them. Find out more about the advantages of appointing a fiscal representative in this article.


When to appoint a fiscal representative ?

You can choose the fiscal representative of your choice, just take into account that the company must be registered before any taxed commercial operation, therefore the appointment of the fiscal representative must be done beforehand.


The advantages of a fiscal representative for your company

Since the appointment of a fiscal representative is governed by law, this is the only way to carry out the transaction of goods in Europe (purchase, sale, storage) while being compliant with the law.

AKONEO International offers you a service of fiscal representation or fiscal agent according to your needs. We take care of all missions related to tax compliance: from registration to VAT declaration. We provide you with a solution adapted to the new regulations, a team of experts in international VAT as well as a customized support in your language (English, French and Spanish).