Fiscal Representation makes it easier to bring your business to Europe.
A good fiscal representative takes care of the administrative and fiscal obligations of foreign companies and allows them to focus on their core business.
Fiscal representation is a service in which a company represents a business that wants to import their products to the European Union. With the fiscal representation, we can help your company establish itself in the European Union in a more competitive way. VAT is a specific type of tax applied in the European Union. EU regulations state that companies must have a certain type of establishment within the EU to avoid VAT at customs. The fiscal representation takes care of the presentation of VAT returns, to pay the amount of VAT due to the authorities by submitting the Intrastat European Sales statements, if necessary. There are two types of fiscal representation: General and Limited. We will be more than happy to explain to you which form of tax representation would be most suitable for your business.
The fiscal representation has more advantages then just registration of a foreign Supplier. This has the most got to do with the diversion of VAT by import and the administrative costs that will be taken away from the foreign Supplier. The foreign supplier will be represented for his rights and duties by the fiscal representative. The representative is responsible and partly liable for the VAT over the flow of goods. By using a fiscal representative the cost for supplying customers in Europe will be cheaper and faster and there are more several more advantages to take a fiscal representative.
Using a Fiscal Representative has financial advantages
Using a fiscal representative can give advantages. Financial advantage is that you don’t need to finance VAT. Freedom you only have to inform customs 1 time after that you don’t have to do it anymore. The Foreign Supplier can take the whole Dutch administration and outsource it. But there are still some conditions to this. There has to be a company policy set and followed.
Fiscal Representatives 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. The foreign company still is responsible for his own tax obligations. Appointing a fiscal tax representative allows you to make your fiscal representative liable for complying with these obligations. If you choose CAPLINQ as fiscal representative, we are insured and have a standing tax deposit with the tax authorities. This will save you money for extra insurance and have a relaxed mind with his tax obligations being matched.
Limited Fiscal Representation Services
Limited Fiscal Representation allows your goods to move freely with the EU.
Taking the headaches out of VAT Limited fiscal representation allows goods to be imported into the EU without paying import VAT. This offers a significant liquidity advantage. A fiscal representation with a limited license can only act on behalf of a non-resident company for the importation of goods and the further benefits of these goods. With the Limited Fiscal Representation we can act as a fiscal agent for companies who import goods into the EU.
Limited fiscal representative will be limited to act on behalf of a non-resident company for the import of goods without pay VAT and the delivery of these goods. This kind of representation is good for activities from sea freight to airfreight. Limited fiscal representation has one license where new customers can easily be added to the licence.
Advantages of having CAPLINQ as your LFR
You want your products to be delivered in Europe via Rotterdam? Than you need a Dutch LFR because when you want to import your products for 0% VAT you need a Dutch VAT-number. LFR outside the Netherlands can’t get a Dutch VAT-number only LFR inside the Netherlands can.
General Fiscal Representation Services
General Fiscal Representation will take away all your worries about VAT because the Fiscal Representative will take all the VAT duties.
The general fiscal representative will take over all VAT duties this kind of representation is for a logistics contract. The agreement between the representative and foreign supplier is a long term agreement. A VAT-number will be requested for the Foreign Supplier. All the VAT transactions will be going through this license..
Foreign suppliers have cash flow and financial liquidity benefits
The non-resident supplier doesn’t need to do a study on the Dutch VAT-Rules. It isn’t needed because the General Fiscal Representative knows the rules. It’s more important that the supplier knows how to apply the VAT import deferment system. This can deliver cash flow and interest benefits.
CAPLINQ's Order Fulfillment Services allows you to sell directly to European customers.
CAPLINQ combines its fiscal representation with its Order Fulfillment Service. You can stay maintain a specific price list for all your articles. You don’t need guess how much you have to pay for duty, taxes and delivery separately anymore.
CAPLINQ is very different than the traditional distributor or agents; you can see all our cost because they are transparent. You will see what your customers pay for your products, duty, shipping and delivery charges. That is what CAPLINQ’s Order Fulfillment service does.
Simple and understandable price for order fulfillment
CAPLINQ provides a clear price for the services and transport, the price is good to understand. It doesn’t matter if you use shipping pails, drums, barrels, pallets or boxes; the logistics adder follows a simple formula to calculate the price. Learn more about how the logistics adder is calculated.
Your European customers still pay you directly
CAPLINQ’s order fulfillment service acts as a way to save your European customer money. The saved money benefits both the supplier and customer. The payments are still between the supplier and the customer directly.
CAPLINQ unlike other traditional agents or partners, we do not charge commissions or fees for the services we deliver to the supplier or customer. Everything that is mentioned above is included into the logistics adder. We like to say that CAPLINQ’s order fulfillment services do not cost you any money. We make our profit by taking a part of the savings!Find out more about Order Fulfillment
Frequently Asked Questions about European Fiscal Representation
What is the difference between General Fiscal Representation Services and Limited Fiscal Representation Services?
The differences between Limited and General Fiscal representation, are the Limited fiscal representation are added easily to one licence and thus will take less time than making a new contract. Limited fiscal representation has a limitation of handlings from import to delivery, while General fiscal representation a contract is for a long time where a VAT-number is requested for the foreign supplier.
What makes our costs transparent?
What makes CAPLINQ’s cost transparent is the logistics adder. That is the Duty Charge + Billable Weight Charge. You can save money by paying duty on the manufacturing cost not the sales price. Billable weight is the greater of gross weight and dimensional weight. The billable weight charge is simply the billable weight X location Rate. This is what makes our costs transparent because you can find out what it will cost.
How does CAPLINQ’s order fulfillment save your European customers money?
As fiscal representative CAPLINQ will import your product. The fiscal license we own allows us to import for foreign companies. The Foreign Supplier is still owner of the products at the time it crosses the border. This is the reason why the manufacturing price can be justified at the time of the import. This allows you to sell your products for the sales price. The customer will save money and it will benefit both you and the customer.
How much does fiscal representation cost for a business of my size?
The fiscal representation fee is part of the inbound shipping service. If you use CAPLINQ's inbound rates, then it is included in the rates. If you choose to use your own carrier, then it is 0.75% of the cost of goods sold (COGS) - far below companies like FedEx, UPS and DHL who charge duty + a 3-5% administration fee. For example, if the value of the goods are €10,000 then the Fiscal Representation fee is €75 if you use your own carrier, or free if you use CAPLINQ's.
How much do I have to pay the tax authorities as a bank deposit for fiscal representation?
CAPLINQ has it's own agreement with the tax authorities as to the amount of bank deposit we have with the customs authorities, but yes - we do have a large deposit with them as guarantee so that foreign suppliers do not have to pay one.
Will CAPLINQ, as our fiscal representative, account for taxes, VAT and other rule compliance issues for meeting the requirements in the Netherlands?
Absolutely. It is not only the service we provide, but our legal requirement to do so under the fiscal representation laws. We have a large deposit with the tax authorities that guarantees that we comply with legal and custom regulations or risk losing our license and deposit. This is very serious business.
Is there a maximum limit we can sell under this fiscal representation agreement?
No. You are limited only by the amount of products your customers buy./p>
How can LFR move your goods freely with the EU?
As Fiscal Representative CAPLINQ is allowed to import the supplier’s goods into the EU without paying import VAT. This will save much money and you will be able to charge your sales price to your customer. That will save the customer money that will both benefit the customer and supplier.
Why can’t other European LFR get a Dutch VAT-number?
Other European LFR can’t get a Dutch VAT-number because they are not located in the Netherlands. To get a Dutch VAT-number you need to be located in the Netherlands. The supplier will get a 0% VAT duty charge and if you were to use another European LFR the supplier would have to pay import taxes into Rotterdam.
Can you help us gain a better understanding of this VAT deferment?
Very simply, if the customer is a business (B2B) customer, CAPLINQ you can invoice the customer without VAT using CAPLINQ VAT deferment license. In the case of consumers (B2C), then 21% VAT must be invoiced and returned to CAPLINQ who will file your transaction on your bahalf using the same VAT deferment license.
Are the limitations on being able to pay duties based on COGS rather than sales price only when we use CAPLINQ's inbound shipping service?
No, the limitations are tied to the fiscal representative agreement, not to whether you use our inbound shipping rate or your own. If you use our inbound service, the fiscal representation fee is free. Otherwise it is 0.75% of the COGS.