+++ EU - 2009 VAT refund deadline delayed from Sep 2010 to Mar 2011 +++ Poland - 1% VAT increase to 23% +++ Australia - Victoria Fire Service Levy to be scrapped in July 2012 +++ UK - VAT to increase from Jan 2011 +++ Romania - increases VAT 5% to 24% +++ UK - confusion on UK 1% IPT increase +++ Andorra - 4.5% VAT to be introduced +++ India - GST to be implemented April 2011 at three standard rates +++ Bulgaria - to introduce insurance premium tax at 2% +++ Finland - VAT and IPT raised to 23% +++ Belgium - the 9.25% insurance premium tax on credit insurance has been withdrawn +++ Canada - HST introduced in British Columbia and Ontario +++ Hungary - implements insurance premium tax +++ Bulgaria - Intrastat reporting thresholds increased +++ UK - HMRC backs down on VAT on InsuranceWide comparison website +++ France - changes requirements for fiscal rep on insurance +++ Bulgaria - New proposals being pushed with the World Bank to introduce mandatory Catastrope Fund to cover earthquakes etc. +++ +++ EU adopts new VAT Directive on electronic invoices +++ Portugal - increased VAT by 1% to 21% +++ New Zealand - increases GST to 15% +++ Spain - VAT rate increases to 18% +++ Croatia - a 10% motor 3rd party liablitiy risk premium will be charged from 2009 to cover traffic accident costs +++ Czech Republic - new rules on non-resident traders extends the requirement to VAT register +++ Greece in second emergency VAT increase from July +++ Hungary - increased VAT rate to 25% +++ Czech Republic - proposal to change VAT payment point to when cash received +++ Mexico - simplification of VAT reporting +++ EU - ECJ court ruling imposes VAT on salary sacrifice schemes and vouchers +++ Italy - extends reverse charge on VAT for foreign companies +++ Denmark - extension of VAT reverse charge on services from non-resident suppliers +++ Panama - increases VAT to 7% +++ Denmark - overhaul of VAT registration process to comply with EU employment law +++ Estonia - reduced VAT increased from 5% to 9%; many items now on standard rate +++ France - National Guarantee Fund levy on insurance premiums is rising +++ Mexico - increases VAT 1% to 16% +++ Estonia - 2% increased VAT from July 09 to help combat financial crisis +++ EU - New proposals to force all EU member states to switch to monthly VAT reporting to help combat fraud +++ EU - more proof required for VAT import exemptions for onward supply relief +++ EU - Revised Mutual Assistance Directive issued to assist tax authorities share information on VAT and IPT +++ EU - new electronic service to verify authenticity of VAT numbers +++ Finland - Traffic Safety Charge for 2009 will be Euro 7.2m +++ France - Tough new invoice requirements to help combat fraud +++ Taiwan - introduces VAT refunds for non-resident businesses +++ France - French Motor Insurance Parafiscal Charge hike from 0.1% to 0.6% +++ France - Natural Disaster Compensation Scheme has increased again from 8% to 12% +++ France - New information requirements for foreign companies applying for non-resident VAT registrations +++ Taiwan - introduces VAT refunds for non-resident businesses +++ France - Confirmation of changes to ACOSS levies, which are now managed by URSSAF +++ Germany - New IPT levy on Surety and Financial Guarantee reinsurance +++ India - sets CENVAT at 10.3% Germany - valid VAT number may not be sufficient evidence alone to allow for zero rating on intra-community supply +++ Germany - proposal to scap the requirement for annual VAT returns +++ Greece - withdrawal of Stamp Duty underway; Life and Damage insurance now exempt +++ Hungary - rules on tax point (now when invoice paid) creates risks for VAT recovery +++ India - many new activities brought into Service Tax regime +++ Hungary - Aircraft hull and aviation liability is now exempt from the 1.5% Fire Brigade Charge +++ Ireland - New retrictions on VAT relief on bad debts +++ Ireland - government insurance levy on non-Life increases from 2% to 3%; new 1% levy on Life +++ Mexico - simplification of VAT reporting +++ Italy - Hunting Accident Victims' Fund changed to 5% of 94% of premium +++ Italy - Scraping of the requirement on VAT-registered businesses for the annual filing of lists of customers and suppliers +++ Italy - Court ruling that VAT reclaims deadline should be two years +++ Italy - potential to defer VAT payments to point where cash received +++ Latvia - standard rate VAT increased by 3% to 21% from Jan 2009 +++ Latvia - 2% VAT increase to take standard rate to 23% from 2010 +++ Luxembourg - Fiscal representation revived for importers of goods +++ Luxembourg - international shipping vessels registered in Lux are IPT exempt +++ Netherlands, The - Tax authorities increase IPT rate from 7% to 7.5% +++ Poland - Potential for quarterly VAT returns +++ Poland - Plans for reverse charge on consignment stock +++ Poland - New 12% Parafiscal Charge on Motor Liability contracts to cover medical care at accidents +++ Poland - improved import VAT set-off scheme for established importers +++ Poland - Polish insurance chamber of commerce says 12% levy on 3rd party motor insurance to go +++ Poland - motor liability insurance is now exempt from the Fire Brigade Tax +++ Romania - Proposals being drawn up with the World Bank for new compulsory national catastrophe program +++ Romania - invoice issuing deadline has been extended to 15 days after the month of the taxable supply +++ Slovakia - adoption of the Euro brings new VAT return form +++ Slovakia - calls for increased VAT rate from the IMF +++ Spain - switch from quarterly to monthly VAT returns proposed +++ Spain - online submissions for non-residents; local bank account still required +++ Sweden - IPT now introduced at 32% of gross premiums on 3rd party liability risks +++ Sweden - group life insurance from Swedish or EU insurers is exempt from IPT +++ Switzerland - VAT rate increase to 8% in 2011 +++ Ukraine - VAT e-filling obligatory +++ United Kingdom - VAT registration threshold increased to GBP70k +++ Seychelles - introduction of VAT at 10% in 2012 +++ Jersey - call for rise in 3% VAT rate +++ Romania - imposes intra-community supply registers +++ India - GST implementation now planned for April 2011 +++ UK - wins ECJ case on restricting VAT refunds to non-EU banks and insurers +++

VAT Fiscal Representative

Under a number of business scenarios, companies trading across borders are required by the local tax authorities to appoint VAT fiscal representatives. Situations include non-EU companies trading in Europe, importers into the EU and commodity traders. Fiscal representatives are responsible for the correct management and settlement of VAT on behalf of companies, in accordance with the local regulations.

TMF VAT provides the market’s largest wholly-owned network of fiscal representatives in Europe and beyond, and can ensure the relevant tax authorities are fully satisfied. With a heavy administrative burden, which varies enormously across the region, TMF VAT can simplify the whole process with a single point-of-contact service for all countries.

Click here for free country-by-country guidance on fiscal representative requirements.

when is a vat fiscal representative required

Below is a summary of the principal situations were a fiscal representative may by required.

1) EU Companies

Up until 2002 all companies trading across European Union borders were required to appoint a local Fiscal Representative in each country where they were providing a taxable supply. This requirement was simplified by EU Directive 2000/65/EC, which required EU member states to instead allow companies to directly register with the relevant tax authorities.

There still remain barriers to direct VAT registration in several countries. These range from tax offices being reluctant to provide simple explanations of the compliance requirements and reporting procedures in anything but the local language, e.g. France and Spain; through to still requiring the formal appointment of a local tax agent, e.g. Poland and Bulgaria.

2) Non-EU Companies

More than half of the 27 EU member states oblige non-EU business to appoint a fiscal representative if they are providing taxable services within their state borders. Countries such as the UK, Germany and the Czech Republic have now withdrawn the requirement.

Since the duty to appoint a fiscal representative and potentially provide bank guarantees (see below) can be extremely onerous, many non-EU companies chose to form a company in one EU country which can then be used as a platform to obtain simplified direct registrations in the rest of the European trade block.

If you require help with the procedures to form a local company with limited ongoing administrative requirements, TMF’s Corporate Secretarial services can assist. Click here for free guidance on the procedures in each country.

3) EU Importing

Where goods are brought into the EU for the first time, a VAT number will need to be produced to clear the goods through customs. Traditionally, this was done by the final customer. Increasingly, however, the sellers are looking to do this so that they can keep confidential the cost valuation of the costs as well as provide a door-to-door service for their customers.

This means that non-resident businesses are more than ever looking to obtain VAT numbers for importation purposes. For non-EU companies, this still requires a Fiscal Representative in most countries.

Whilst EU companies do not usually require a Fiscal Representative, there are a number of advantageous VAT deferral schemes which can save the importer significantly on cash flows. These often require the appointment of a local Fiscal Representative.
Click here for no-obligation guidance on the country-by-country VAT requirements on importing.

4) Trading Goods in Bond and Duty Suspension

Additionally, EU and non-EU traders of commodities (oil, gas, chemicals, pharmaceticals etc.) can deal on a VAT exempt basis in bond if they engage a local Fiscal Representative. Countries such as the Netherlands and Belgium, with large ports, provide special schemes for commodity traders to reduce the VAT cash outflows.

Click here for free guidance on VAT requirements on trading in bond.

5) Beyond the European Union

Outside of the European Union, a number of countries operate a similar facility to permit foreign companies to trade within their borders without a local subsidiary or branches. This generally requires the appointment of a local Fiscal Representative for the purposes of VAT or GST. Countries include: Norway, Iceland, Japan, South Africa, Australia and South Korea.

Click here if you require free confirmation of the countries which offer the non-resident trading facility.

The Role and Liability of the Fiscal Representative

The tax authorities regard a fiscal representative as the local agent of the foreign trader. In many cases, the Fiscal Representative is still held jointly and severally liable for the taxes of the trader. As a result, it is therefore industry practise to require a full bank guarantee in favour of the Fiscal Representative to protect it from losses.

In most countries, the Fiscal Representative is required by the local tax code to ensure that:

The foreign trader is properly registered with the local tax office
The trader is fully compliant with rules on invoicing, VAT treatment, exchange rates etc.
Accounting records are maintained to exacting local standards, and that they are readily available for inspection by the tax authorities
All VAT and associated filings are correctly prepared and submitted
Enquiries and tax inspections from the VAT office are professionally handled

Click here for guidance on country-by-country specific requirements.

TMF’s global fiscal representative network can simplify the whole process

The requirement to appoint a local Fiscal Representative in foreign countries places a cumbersome and expensive burden on international traders – especially if there are multiple countries involved.

With Europe's and the world’s largest network of Fiscal Representatives, backed-up by VAT professionals on the ground, TMF VAT can provide a unified and cost effective service.

Click here to learn more on how TMF can assist your business or call our central co-ordination centre in the UK on: +44 (0)870 067 8881.