limited and general fiscal representation in europe

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 You can also con­tact us if you have ques­tions regard­ing the CAPLINQ’s order ful­fill­ment ser­vices.

About Chris Perabo

Chris is an energetic and enthusiastic engineer and entrepreneur. He is always interested in taking highly technical subjects and distilling these to their essence so that even the layman can understand. He loves to get into the technical details of an issue and then understand how it can be useful for specific customers and applications. Chris is currently the Director of Business Development at CAPLINQ.

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