E-commerce sellers face a significant administrative burden dealing with the varying VAT rates and rules in each EU member state. Even with recent simplifications, a local tax accountant is recommended to navigate the complexities of e-commerce VAT, especially for non-EU businesses. COVID-19 and Brexit have further complicated the situation, with new EU VAT rules and requirements for fiscal representatives. Hiring a local tax accountant ensures VAT compliance in every EU country, providing hassle-free e-commerce. Avoid relying on online information and discussions, and trust a professional to ensure accurate and up-to-date guidance.
MariaLast Updated on 1 March 2023
Who is a Fiscal Representative?
A fiscal representative is a local entity that acts as the VAT representative for a foreign seller outside of the EU. When a foreign seller exports goods to a country, they are responsible for collecting VAT from their customers, which requires VAT registration and compliance. The fiscal representative must be locally registered for tax and is jointly and severally liable for any VAT payments or penalties owed by the represented business. As a result, choosing a fiscal representative requires careful consideration to ensure they understand their responsibilities.
As the UK is no longer an EU member, UK-based sellers must appoint a tax or fiscal representative for EU territories that mandate their use.
What does a Fiscal Representative do?
Joint and several liability is a significant burden, making it difficult to find companies willing to accept the responsibility in certain EU territories. Authorities are exploring ways to alleviate this after July 1. For those willing to take on the challenge, a tax representative can handle VAT registration, returns filing, and other compliance needs, serving as the contact point for tax authorities. A local tax accountant can keep up with new information from all EU member states, ensuring proper VAT compliance. Stricter VAT penalties make accurate record keeping and calculations vital, but having a reliable accountant can keep tax authorities at bay.
I am a business and need support, how can hellotax help me?
Looking for a VAT company that truly cares about your business? Look no further than hellotax!
Our team of VAT experts from across the EU are here to support you in growing your business by taking care of your VAT compliance needs. Whether you’re just starting out in e-commerce or you’re an established business, we can provide the following services:
- Support with VAT registration, returns filing, and other compliance needs
- A dedicated accountant to handle all VAT-related matters
- Accurate record keeping and calculations to avoid VAT penalties
- Keeping up-to-date with all EU member state regulations to ensure compliance
At hellotax, we are dedicated to ensuring our clients around the world never feel alone when it comes to VAT compliance. Let us help you grow your business hassle-free!
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