Fiscal representatives-An integral part of international trade


Fiscal representatives-An integral part of international trade


Fiscal representatives, with whom you can make contact thanks to,  are an integral part of international trade because every country has their own laws and some laws are in the local language of the country concerned.


When indulging in cross border transactions where a lot of money is involved you must be having a lot of questions regarding these laws for instance you may want to know if zero rate will be applied to your supplies or if you have to furnish a bank guarantee to the tax authorities. Ignorance of the law of the country in which you are looking to expand can crush your plans and at the same time even if you do start the business then not knowing the law might attract a lot of penalties due to non compliance. Therefore fiscal representatives become important.


A fiscal representative brings to your knowledge cash friendly schemes for example the deferred payment option. The representatives becomes your single point of contact for all VAT transactions and like I said you won’t need to keep worrying about the risk of being non compliant. You might end up paying unnecessary import VAT but for the fiscal representatives. You can periodically reclaim VAT with the help of a representative.


When you have a fiscal representative then you can leave your VAT related problems to him and focus your time and effort on your core business. You might be a great businessman but ignorance of custom and VAT laws can make you fail and an average businessman who knows these tax laws would end up doing better than you. To stop that from happening you should hire a fiscal representative. If you are still not convinced that fiscal representatives are important then let me tell you that having a fiscal representative affects your cash flow directly because the representative would make you participate in VAT deferral schemes. The last duty of a fiscal representative is to help the company get an EORI number without which the company cannot get custom clearance in Europe. Also, if your company changes the business name, address or VAT number ( if registered) then the representative will inform the EORI team about the same.


Now that we have seen all the many benefits of having a fiscal representatives let us now see who can act as a fiscal representative. Some countries prescribe certain qualifications which are necessary for those who can act as a fiscal representative and in any case the representative should have in-depth knowledge of the laws of the countries which are involved in trading and the languages used in both countries.


Let us look at the information you have to provide to the fiscal representative before they can start work. You have to first provide your fiscal representative with information about all subjects with whom you have legal or tax relations. Next you have to provide fiscal representative the details required to file tax declarations.


I would like to conclude by saying that you should hire someone with good relations with the tax authorities so that you can settle all disputes out of the court but as a last resort the representative can help you in a suit .