What is a fiscal representative?
A fiscal representative (also called a tax representative) is a person or company established in an EU country who acts for a foreign business in that country’s VAT system. It registers the business for VAT, files its returns and deals with the tax authority. In most countries it is also jointly liable for the VAT the business owes, which is why tax authorities sometimes require one.
The EU VAT Directive allows each country to require a fiscal representative for businesses established outside the EU, unless the business’s home country has a mutual assistance agreement with the EU covering VAT. Rules therefore differ from country to country.
Core principle: A fiscal representative gives the tax authority someone local to hold responsible. For you, it means paperwork handled locally and a guarantor for your VAT.
Who needs one?
- Non-EU businesses that must register for VAT in an EU country, for example because they hold stock in an EU warehouse. Whether a representative is compulsory depends on the country and on where the business is based.
- Usually not EU businesses. An EU business registering in another EU country can normally register directly, without a representative.
- Some importers who want to use import VAT deferral schemes, such as the Netherlands’ Article 23 licence, which non-EU businesses access through a fiscal representative.
Types of fiscal representation
1. General fiscal representative
Registers the foreign business for VAT and handles all its VAT obligations in the country, including returns and payments.
Why it matters: Required where a non-EU business has a full VAT registration in a country that demands representation.
2. Limited fiscal representative
Offered in some countries, such as the Netherlands and Belgium, for importers whose goods are imported and then immediately shipped on to other EU countries or exported. The representative handles import VAT under its own licence.
Why it matters: The foreign business doesn’t need its own VAT registration for those flows.
3. Voluntary VAT agent
A tax adviser or compliance firm that files returns for you where a fiscal representative isn’t legally required.
Why it matters: Many brands use one anyway for language and local know-how, but it isn’t liable for your VAT.
Fiscal representative vs customs representative
| Fiscal representative | Customs representative | |
|---|---|---|
| Deals with | VAT registration, returns and payments | Customs declarations and duties |
| Liability | Usually jointly liable for VAT | Jointly liable for customs debt if acting as an indirect representative |
| Typical provider | Tax adviser or VAT compliance firm | Customs broker or forwarder |
Many non-EU brands need both: a customs representative to import their goods, and a fiscal representative or VAT agent to register them for VAT in the country where the stock is kept.
What it costs
Because the representative shares your VAT liability, expect an annual or monthly fee, and often a bank guarantee or deposit that depends on your expected VAT. Ask what is included: registration, monthly or quarterly returns, EU sales listings, OSS returns and correspondence with the tax office are often priced separately.
Example: A US home-goods brand stores stock in a fulfilment centre in Poland and needs a Polish VAT registration. It appoints a Polish VAT firm as fiscal representative, which registers the brand, files its Polish VAT returns and its OSS returns for sales to other EU countries, and provides a guarantee to the tax office.
Read more in Selling in the EU from outside the EU: VAT, EORI and stock.
Frequently asked questions
Do UK companies need a fiscal representative in the EU?
It depends on the country. The EU–UK agreement includes VAT mutual assistance, so many EU countries don’t require one for UK businesses, but some still do or recommend it. Check each country where you will register.
Is a fiscal representative liable for my VAT?
In most countries, yes: it is jointly and severally liable for the VAT you owe. That is why it usually asks for a guarantee or deposit.
Can my fulfilment provider be my fiscal representative?
Usually not. Fiscal representation is a regulated tax service provided by VAT specialists or tax advisers, although fulfilment providers often work with partners who offer it.
Do I need a fiscal representative for IOSS?
Not exactly. Non-EU sellers usually need an IOSS intermediary, which is a similar role specific to the IOSS scheme.
