If your company is not based in the EU, then it is most likely to be required to appoint a tax representative in at least one of the EU countries with which it operates. This representative is seriously liable for any tax non-compliance.
Companies established in an EU country are not required to appoint a tax representative so any tax issues may be dealt with directly by a tax adviser. However, companies that are not established in the EU are generally, with a few exceptions, required to appoint a tax representative in at least one EU country.
Tax representatives take a significant risk as they support and are liable to the Tax Office for any tax debts that may be incurred by their clients in their transactions.
In addition to the above, tax representation is a cost-effective alternative for foreign companies operating from outside the EU with significant advantages, such as:
- To allow entry to the EU market without the need for physical establishment, which means lower costs and obligations.
- The income from its sales is not subject to Corporation Tax.
- No bookkeeping in the EU country where the company’s products are sold.
The main concern of companies not established in the EU must therefore be to fulfil their obligation to appoint a tax representative in the country where they need one. And such tax representative will help the company to comply with all its VAT-related obligations.
At VATONTIME, we provide tax representation services for those companies that meet our strict selection criteria and under certain security measures.