What is a fiscal representative?

A Fiscal Representative is a tax registered company who will act in your behalf taking care of your administrative obligations, managing VAT affairs while dealing with the tax authorities. It enables non-EU companies to trade in countries where Fiscal Representation is mandatory and where it is not, it allow both EU and non-EU companies to benefit from VAT and cash flow advantages where possible. In general, the Fiscal Representative has a jointly liability for VAT owed by a company, therefore it is industry practice to require a security deposit or bank guarantee in favor of the Fiscal Representative to mitigate against potential risks if the company reneges any of their liabilities.In addition, strict requirement has to be met in order to be granted a Fiscal Representation license. These requirements may vary depending on the country, however Fiscal Representatives have to be established in a given country and provide financial security.