Concept Definition
What is a fiscal representative?
A fiscal representative is a locally established entity that represents a foreign business for VAT compliance purposes in a jurisdiction where the foreign business is not established. The fiscal representative is jointly liable for the foreign business's VAT obligations. EU rules require fiscal representatives for non-EU businesses in some member states.
When is a fiscal representative required?
Fiscal representative requirements depend on the jurisdiction:
- EU: Required for non-EU businesses in some member states (e.g., France requires fiscal representatives for non-EU, non-OSS businesses).
- UAE: Non-resident businesses making taxable supplies in the UAE may need a fiscal representative.
- Post-Brexit UK: Non-UK businesses may need a UK VAT representative depending on the nature of supplies.
Frequently Asked Questions
- Is a fiscal representative the same as a tax agent?
- No. A tax agent acts on behalf of a business but does not bear personal liability. A fiscal representative is jointly and severally liable for the represented business's VAT obligations. This distinction makes fiscal representatives more expensive and creates significant risk for the representative.
- Does EU OSS eliminate the need for a fiscal representative?
- For B2C digital services and distance selling covered by OSS, non-EU businesses can use OSS instead of appointing a fiscal representative in each EU member state. However, OSS does not cover all types of supplies, and fiscal representatives may still be needed for B2B supplies or physical goods.