This article has been written after the the substantial change in VAT regulation of July 2021.
If you’re a non-EU based seller planning to expand your business to Italy or France, you’re likely to encounter a requirement that might sound complicated: fiscal representation. But what exactly is fiscal representation, when do you need it, and how does it impact your VAT in Italy and VAT in France management?
What is Fiscal Representation in the Context of VAT?
Fiscal representation is the obligation for some businesses not established in the EU to appoint a person or entity that resides in an EU country to act as their representative before local tax authorities. The fiscal representative is responsible for ensuring that the business complies with all obligations related to VAT in Italy or VAT in France.
When Do You Need a Fiscal Representative?
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Non-EU Companies with Taxable Activity: If your company is based outside the EU and plans to conduct taxable sales in Italy or France, it is very likely you’ll need a fiscal representative.
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Direct Sales to Consumers: Especially if you’re not using a marketplace like Amazon, or in some specific cases even if you are.
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Complex B2B Transactions: In B2B operations with complex triangular or cross-border shipments, some authorities may require a fiscal representative.
How Does Fiscal Representation Impact Your VAT Management?
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Registration and Compliance: The fiscal representative will manage your VAT in Italy or VAT in France, including submitting returns and communicating with local tax authorities.
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Liability: By acting as your representative, they’ll assume part of the responsibility in case of non-compliance or tax error.
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Costs: The services of a fiscal representative come with a cost that you should take into account in your business strategy.
How to Simplify the Fiscal Representation Process:
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Seek a Specialist: Choose a tax services provider with experience in fiscal representation and specific knowledge of Italian and French regulations.
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Clear Communication: Keep a fluid communication with your fiscal representative and make sure to fully understand all your obligations.
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Organized Documentation: Have all your tax documentation in order, including invoices, sales records, and other relevant receipts.
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Automation: Use specialized software to automate the collection and submission of tax data, reducing manual effort and the chances of errors.
If your business requires a fiscal representative to operate in the EU, make sure you understand your obligations and find the right partner to navigate the complexities of VAT in Italy or VAT in France. With the right help, you’ll be able to comply with tax regulations and focus on your business growth.
Call to Action:
Do you need help with fiscal representation for VAT in Italy or VAT in France? Contact us today and discover how we can simplify this process for you.
