Fiscal Representation
A fiscal representative is an economic operator who, on behalf of a foreign economic operator, assumes its sales tax obligations towards the local tax authorities .
Situation in Germany
According to § 22a of the Value Added Tax Act (UStG), a foreign company that appears as a debtor of import sales tax (declarant) of goods can be represented by certain legally defined economic operators. The following companies are approved for fiscal representation ( § 3 and § 4 of the Tax Advisory Act ):
- Tax advisors , tax agents and tax consulting companies
- Lawyers , auditors , auditing companies, sworn accountants and auditing companies
- Forwarding companies , insofar as they provide assistance in matters of import duties
- other commercial companies, insofar as they provide assistance with import duty matters in connection with customs handling (e.g. customs declarants , warehouse keepers )
The foreign economic operator must appoint the fiscal representative by power of attorney prior to the transaction subject to VAT . Neither the client nor the contractor need to be an Authorized Economic Operator.
The solution, known as the small fiscal representative, has been available since 1997. It is suitable for companies from non-EU countries who import goods into the EU customs area via a German customs office, but want to sell them in a country other than Germany. In order not to pay import sales tax at the German border, such companies hand over the processing to a domestic fiscal representative, who represents the processing as an intra-Community delivery. According to the German regulation, only the following transactions are possible:
- Tax-free imports, which are immediately followed by an intra-community delivery (Section 5 Paragraph, 1 No. 3 UStG)
- Tax-free intra-community acquisitions, which are immediately followed by an intra-community delivery (Section 4b No. 4 UStG)
- Tax-free cross-border transport of objects within the meaning of § 4 No. 3 UStG, provided that the entrepreneur does not purchase any deliveries or other services for which he can deduct input tax according to § 15 UStG.
Duties of the fiscal representative
Upon request, a fiscal representative in Germany will receive a separate tax number and sales tax identification number . He must submit a sales tax return from all companies he represents under the separate tax number . If the sales reach a corresponding level, the fiscal representative must prepare a summary report for the sales represented. In all respects, he must comply with the relevant rules and laws in Germany with regard to recording and retention requirements.
Situation in Austria
In Austria, the duties of the fiscal representative in accordance with Section 27 of the Value Added Tax Act of 1994 include sales tax , wage taxes , flight tax and insurance tax . Foreign economic operators are also required to represent a fiscal representative (§ 27.7.1.), If this
- have neither domicile, registered office nor permanent establishment in the community area and
- carry out taxable sales in Austria (except for services for which the recipient of the service is liable in accordance with Section 27 (4) UStG 1994),
Further European Union
In other countries of the European Union there is also the so-called Grand Fiscal Representation. This also enables the processing of VAT-liable transactions inland without having to set up a branch. Local legislation is decisive in these cases.
Individual evidence
- ↑ a b c Fiscal representation on the website of the German customs (www.zoll.de); accessed on March 7, 2016.
- ↑ a b c d e f g h Hamburg Chamber of Commerce, fiscal representation for foreign companies in Germany ; As of 2008; in the section Law and Taxes; accessed on March 7, 2016.
- ↑ fiscal representation ; Information for the public accountants and tax consultants Mag. Renate Ottl; accessed on March 7, 2016.
- ↑ 26. Special provisions for import sales tax (§ 26 UStG 1994) ; accessed on March 7, 2016.