Differences In Limited and General Fiscal Representation Services

Trad­ing activ­i­ties like import and export into Europe require a VAT reg­is­tra­tion and var­i­ous reports. VAT is a type of tax that is applied in the Euro­pean Union.

Accord­ing to the Euro­pean Union reg­u­la­tions, com­pa­nies must have some type of estab­lish­ment with­in the Euro­pean Union to avoid customs.

Fis­cal rep­re­sen­ta­tion is a ser­vice in which a com­pa­ny rep­re­sents the busi­ness they want to import their prod­ucts in EU. With this rep­re­sen­ta­tion, CAPLINQ helps your brand to estab­lish itself in the EU in an eas­i­er and a com­pet­i­tive way. Also, we take care of every VAT return and clear the returns by sub­mit­ting the Intra­stat Euro­pean Sales statements.

There are two types of Fis­cal Rep­re­sen­ta­tion: Gen­er­al and Limited.

Dig-in to know the differences between CAPLINQ’s Limited and General Fiscal Representation service.

The Lim­it­ed rep­re­sen­ta­tion allows your goods to move freely with­in EU, while Gen­er­al Fis­cal Rep­re­sen­ta­tion takes account of all your VAT duties.

• LFR is used when goods come into one EU state and have been sold to a com­pa­ny in anoth­er EU mem­ber state. And, GFR is used when­ev­er you buy goods from anoth­er EU mem­ber state.
• In LFR, your goods get freely import­ed into the Euro­pean Union. The LFR rep­re­sen­ta­tive is lim­it­ed to act on behalf of the for­eign com­pa­ny for the import with­out pay­ing the import VAT.

While in GFR — the rep­re­sen­ta­tive has to take over the Vat duties. There is a long-term agree­ment between the for­eign sup­pli­er and the rep­re­sen­ta­tive. A VAT num­ber is request­ed for the sup­pli­er, and then all the trans­ac­tions go through this license.

• Gen­er­al Fis­cal Rep­re­sen­ta­tion is for a logis­tics con­tract, and Lim­it­ed Fis­cal Rep­re­sen­ta­tion is best for activ­i­ties like air and sea freight.
• With the Lim­it­ed ser­vice, we can only act as a fis­cal agent, but with the Gen­er­al one, a rep­re­sen­ta­tive takes away all your duties.
• If your busi­ness requires an LFR ser­vice, you need to have Dutch rep­re­sen­ta­tive along with a Dutch VAT number.

But if you take a GFR, the sup­pli­er does not need to know Dutch VAT rules as the Gen­er­al Rep­re­sen­ta­tive already knows the rules. The sup­pli­er only needs to know how to apply import defer­ment sys­tem to deliv­er inter­est ben­e­fits and cash flow.

To learn more regard­ing which fis­cal rep­re­sen­ta­tion will suit your busi­ness, vis­it www.caplinq.com. You can also con­tact us if you have ques­tions regard­ing the CAPLINQ’s order ful­fill­ment ser­vices.