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What is Fiscal Representation


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What is Fiscal Representation?

Fiscal representation is a service in which a foreign entity or business appoints a representative in the importing country to manage their tax and customs affairs with the relevant authorities.

Types of Fiscal Representatives

There are two types of fiscal representatives: general fiscal representatives and limited fiscal representatives. The specific responsibilities depend on the type.

Responsibilities of a Fiscal Representative

A fiscal representative's role may include completing VAT returns and applying the reverse-charge mechanism on imported goods.

Can Customs Forwarding Agents Act as Fiscal Representatives?

Yes, in some cases, customs forwarding agents may also act as limited fiscal representatives.

Why Do Foreign Businesses Engage Fiscal Representatives?

Engaging a fiscal representative may allow foreign businesses to avoid registering as taxpayers for VAT purposes in countries where fiscal representation is required.

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