In a nutshell, fiscal representation is a service in which a company represents a foreign business that wants to import their products to the European Union.
The fiscal representative can help your company establish itself in the European Union in a more competitive way and with a significant liquidity advantage. In other words, the fiscal representative has legal and fiscal knowledge to help your company to import good into Europe.
Also, the fiscal representative will represent the foreign business for all his rights and duties. Since the tax authorities regard a fiscal representative as the local agent of the foreign trader.
The fiscal representative is responsible and partly liable for the VAT over the shipping of goods, this means that by using a fiscal representative the cost for supplying customers in Europe will be cheaper and faster.
Using a Fiscal Representative has financial advantages
The great financial advantage of having fiscal representation is that you don’t need to finance VAT. Your company only have to inform customs that you don’t have to do it anymore. In addition, the Foreign Supplier can take the whole Dutch administration and outsource it. But, there are still some conditions to this. (You can learn more about the financial advantages here).
Fiscal Representation allow you to apply reverse-charge mechanism
As foreign company, you can still apply the reverse-charge mechanism for the import if you appoint a tax representative. Therefore, the foreign company still is responsible for his own tax obligations.
Furthermore, appointing a fiscal tax representative allows you to make your fiscal representative liable for complying with these obligations.
Fiscal Representative will take your headache out of the VAT
Limited fiscal representation allows goods to be imported into the EU without paying import VAT. This offers a great liquidity advantage. With the Fiscal Representation license CAPLINQ can act as a fiscal agent for companies who import goods into the EU. Thus, avoiding VAT payment and giving your company piece of mind.
CAPLINQ combines its fiscal representation with its Order Fulfillment Service. With this two services combined, you can maintain a specific price list for all your articles.
As a result, you don’t need guess how much you have to pay for duty, taxes and delivery separately anymore. You can also learn more about Order Fulfillment here.
Please visit us at www.caplinq.com to learn more about our Fiscal Representation services. If you have any other questions about Fiscal Representation, please don’t hesitate to contact us.