Fiscal representation to simply the tax related matters for you
Fiscal representation becomes very important when you want to fulfill your VAT obligations, but are not aware of the VAT rules.
A representative will represent your business in any given year and review all your international transactions.
There are two kinds of fiscal representation. The first is called limited fiscal representation and the other is called general fiscal representation. In limited fiscal representation the main aim is to ensure tax deferment. Tax deferment means postponing the tax for another year. General fiscal representation comes into play when the transactions being talked about are of a complex nature and the number of services being availed are larger in number.
You as a company must include the role of a fiscal representative as a part of your tax strategy. All major companies employ tax experts to make sure that their tax needs are taken care of. The whole process of hiring a fiscal representative makes sure the logistical process becomes simple and you gain an advantage in terms of liquidity. You can hire a limited fiscal representative, but if the job that you want to assign to the representatives is complex and you want to transfer complete responsibility of tax matters to the representative then go for a general fiscal representative. The general fiscal representative once hired will become liable for the guarantee of all the amounts that will be spent on VAT.
The reason why you want to appoint a fiscal representative could be that you are running a business which makes you need to register for VAT in another country. Although the biggest and main reason which should be enough is that you are not aware and do not have a thorough knowledge of tax laws. The representative becomes the single point of contact for all taxation matters and is jointly and severally liable for all VAT matters.