What is a tax representative and when is one required?
A tax representative (also called a fiscal representative) is a person or entity appointed to fulfill VAT obligations on behalf of a non-resident taxable person in a jurisdiction where they have taxable supplies. Fiscal representation is required in some EU member states for non-EU businesses and in some jurisdictions for any non-resident business. The representative is jointly and severally liable for the represented business's VAT obligations in that jurisdiction.
What obligations does a tax representative take on?
A tax representative's obligations include: registering the represented business for VAT in their jurisdiction; preparing and filing periodic VAT returns; maintaining VAT records; remitting VAT due to the tax authority; responding to tax authority inquiries; and notifying the represented business of any changes to local VAT rules. The representative signs VAT returns and is legally responsible to the tax authority for compliance during their period of appointment.
Frequently Asked Questions
- Can a business replace its tax representative?
- Yes. A business can change its tax representative. The process requires formally appointing the new representative and notifying the tax authority. The departing representative retains liability for VAT obligations during their period of appointment. A transition meeting to hand over records, open periods, and pending correspondence ensures continuity of compliance. The new representative should review all open periods before accepting appointment to understand inherited risk.
- Is OSS an alternative to fiscal representation in EU countries?
- For EU digital services B2C, OSS registration in one member state eliminates the need for fiscal representation in other EU states. However, OSS only covers specific supply types (digital services, certain goods). For other taxable supplies (domestic goods supply from warehouse in another country, land-related services), local VAT registration with or without a fiscal representative is still required. OSS is not a complete substitute for local registration in all scenarios.