Fiscal representation is a service in which a foreign entity, or business, appoints a representative in the importing country to handle their tax and customs affairs with the relevant authorities
This representative can be either a general or limited fiscal representative, depending on the specific responsibilities they are given. In some cases, customs forwarding agents may also act as limited fiscal representatives.
The role of a fiscal representative may include completing VAT returns and applying the reverse-charge mechanism on imported goods. In countries where fiscal representation is required, engaging a representative may allow the foreign business to avoid registering as a taxpayer for VAT purposes.