VAT tax is one of the many taxes that imposed on goods and services mostly in trade and VAT No. is very much essential for the business. The VAT registration is mandatory for the companies who are all involves in trading. The number given to each VAT registered companies and it also varies from one country to other and mostly this number has the country code as its prefix after followed by a series of numbers which will be handy for the tax authorities to watch the Tax paid details and other details about the company or Business. The VAT registration formalities are different from one country to other. So, the business or companies are advised to keep or appointed the local person as a fiscal representative. This fiscal representative will do all kind of necessary formalities on behalf of the company and provide good moral support to the company in Tax related matters. He/she is the sole responsibility for to carry out all kinds of tax matters on behalf of the company. These representatives are professionals and they know all the regulations that followed in their country. This will help the company or business to simplify the VAT application process.
VAT Registration Necessity
VAT registration is vital and important for the business or company. Without Vat registration, a company or business cannot engage in trade with any other countries most importantly with European Countries. This registration will help the company to avoid any kind of penalization by the tax authority if the company’s total turnover exceeds the threshold that was imposed by the country and it is very much helpful to monitor the company’s performance in the country’s market. The registration also gives some credibility to the business that carried out by the company, appointing a Fiscal representative will always handy to deal with these matters.
Each company has their respective local representative and they are called as the fiscal representative who acts behalf of the company in the tax related matter and this local representative has wide knowledge about the tax rules in their respective countries. Major benefits and rules are known very well to the fiscal representative. There is some VAT refund also given to the company regarding any of their transactions and most importantly that is different from one country to other in the European Union. Some countries don’t give this benefit for certain transactions and other countries give this benefit to reasonable transactions. This causes some much complication and confusion regarding taxation and Tax Benefits. So, every company has their own representative to deals with taxation matters.
The main role of these fiscal representative appointed by the company or business is registering and getting the number for VAT. The number given for the VAT registration is very much useful to get any kind of benefits awarded by certain countries to certain companies or business. Every representative must be aware of these and give the perfect report to the tax authority to get these benefits.
Service Providing Companies
Appointing a Good and experienced representative is very much needed in business with European countries. This representative must possess all kind of tax related knowledge and have the potential to stand with the company when any tax-related issues arise. Before anything arises, it is his/her responsibility to monitor the tax payment. Most of the US based companies engaged in business with many European Union Countries and they must be aware of the benefits of appointing the good fiscal representative. There are many good local representatives available throughout European countries but some of them are best and the best only can help the companies in tax related issues and provide the best support to the company
Many service providers available throughout European countries to provide the good representative to the company. There are some best companies available in Europe to help the US-based companies in providing local representative that is simply because they care about the business run by US based companies. Companies like VACUE providing this kind of service in free of cost and also helps to find the perfect representative or customs agents as per the company requirements. This free cost of service is possible for them because they get all kind of financial supports from the sponsors.