Importance of fiscal representation in Belgium
There is no need for fiscal representation in Belgium when one is going for a VAT registration in other EU member country. But many member states would ask you to appoint a representative when you are going to start a business in their country/member state and when you are registering for VAT in their country. Also, it becomes quite important to hire a fiscal representative when a non-resident business is going to get registered for VAT in many countries outside of the European Union.
The representative thus appointed will have to prove his capability by ensuring compliance with local VAT related laws. He also has to prove his mettle by taking care of invoices, filing, payments, all accounting procedures and VAT treatment. VAT treatment includes all information about how VAT works, VAT on capital goods, VAT laws for unregistered traders, effect on VAT when goods get lost in transit, VAT on trade, VAT on works contracts, zero-rated VAT, supplies made in preparation of goods when the goods will be exported
Going for fiscal representation in Belgium means that the representative will answer every query coming into your mind and queries coming from the local VAT office and he /she will take care of all tax inspections that take place. In a tax inspection, the fiscal representative will help HMRC inspect your VAT records and assure tax authorities that you have been paying the amount of VAT that you need to pay and at the same time the tax authorities will be assured that the amount of VAT reclaimed is proper. You will not have to worry about VAT refunds once you have hired a representative. A representative will in all probability know how often the tax visits might happen depending upon how large and complex your business is. Before the tax visits happen the representative will inform you about wrong returns filed and if the returns were submitted later than the last date. Then he will suggest a course of action. When the tax authority tells you that a penalty has to be paid, then the representative will discuss with the authorities about whether the penalty can be waived or reduced.
There are innumerable reasons why you must hire a fiscal representative and these are just a few.