It is important for all the companies doing import/export trade operations to register for the VAT. It plays a vital role in the company’s financial management. Fiscal representation is done by the companies operating in foreign countries with the assistance of fiscal representative. In Germany it is essential to appoint a local fiscal representative as all the documentation is done in German language.
A fiscal representative generally assists foreign companies to register for the VAT services in order to facilitate their business operations in the respective country. Germany is a nation where the VAT registration is done in local language and all the documents need to be submitted by translating them into German language. In such a case a local fiscal representative can fulfill all the VAT obligations required by the German authority. They register the foreign company for the VAT service and obtain a VAT registration number which is required for the further business operations.
A fiscal representative in Germany will be a lot helpful in case of communication with the German tax authorities. As these authorities generally prefer to communicate in German language only it will prove to be beneficial to hire a local fiscal representative. There are some indications for consultants who wish to work as a fiscal representative in Germany. The tax consultants, tax agents, lawyers, accountants, auditors, forwarding agents and other commercial companies are allowed to act as a fiscal representative in Germany. Custom declaration agents can act as fiscal representative for foreign companies for customs operations.
In order to appoint a fiscal representative in Germany, the company should not have domicile and registered office in Germany. Alongside for the import of the goods the German tax authorities impose their different obligations that are handled by the customs and are different than other EU countries.