Fiscal Representation

 

The concept of the “fiscal representative” first appeared in German legislation for tax on sales/purchases (Umsatzsteuerrecht)
on 1 January 1997.

The term is used to refer to someone residing in one country who represents a company in another country in matters relating to tax legislation.

This “fiscal representative” takes responsibility for the tax obligations in the country in which they reside on behalf of foreign customers. The advantage of this is that foreign companies do not need to be registered in Germany for tax purposes and therefore do not need to manage their tax obligations themselves.

Deliveries from non-EU countries can therefore be delivered cleared and non-tax paid to any goods recipient in any EU country. This usually saves time, because the goods become available to the recipient at an earlier stage.

We would be happy to advise you if you would like to know more about fiscal representation.