Certain business activities like trading of goods into Europe requires a local VAT registration and several reports- Purchase lists, EC sales, and Intrastat.
The European authorities ask for the declarations as the business is involved in cross border operations. And, they need to ensure that the business complies with all the mandatory Legislations.
With the different VAT rules and regulations, the process of assessing the compliances, submitting and preparing the declarations can serve as a daunting task.
Importing and shipping of goods into the European Union requires a Fiscal representative who understands the European regulations on VAT.
Fiscal Representative takes care of the administrative and fiscal obligations
Fiscal representatives take VAT returns and customs, submit it to the Intrastate European Sale Statements and manage all the activities with the European Authorities.
Read on to know how a CAPLINQ’s Fiscal representative can help you expand your business to the European Union.
1. Helps you with VAT submission and returns
VAT is value added tax that is to be paid along with the import duties to the customs at the time of shipping. Depending on the services, 6% or 21% of the rate is to be paid. The Fiscal representative takes care of registering your business for VAT. Therefore, ensuring that the right rate of VAT is applied, processing and submission to the taxes to the concerned authorities.
2. Protection against the cheaper products
The European Union applies common customs tariffs, and value added tax along with consumption tax and excise duty.
But, in the case of the U.S. based organizations, import duty is also applied to protect the European countries against the cheaper products. Adding import duties makes the products expensive leading to the less price difference and allowing other countries to compete globally.
3. Helps in deferment of Import VAT
In import VAT deferment, you are not required to pay VAT on import. But, it has to be paid while filing the returns. And to pay the tax during returns as a foreign business, you need an Article 23 permit that you get only by appointing a fiscal representative.
With the help of CAPLINQ’s Fiscal representation service, your company can establish in the European Union more easily and competitively. And, the cost of supplying products in the Europe will also be cheaper and faster.