Frequently Asked Questions
VAT
When can registration be advantageous?
Registration for VAT may be advantageous for the purpose of deducting / recovering VAT paid in the following transactions:
- When foreign clients do not have to comply with the formalities in relation to the payment of VAT;
- Buying and selling in other countries without having to bear the high costs of maintaining an agent, establishment, branch or subsidiary;
- Exporting of equipment including the installation thereof in the destination country;
- Temporary hiring of equipment with technical assistance;
- Contracting of construction or decoration services in other countries;
- Distance selling to other countries in the European Union;
- Invoicing using the address of a Fiscal Representative and local VAT number;
- Operating with a warehouse abroad;
- Carrying out triangular transactions;
- Organising events in countries where the organiser is not established.
When does a legal representative is needed?
When a non-established entity carries out transactions in a territory in which it is considered taxable, either by obligation or by choice, a legal representative may be appointed for the purpose of their relationship the local Fiscal Administration. This appointment should be made prior to any transactions being carried out and made in favour of an entity domiciled in the that territory.
The appointment of a fiscal representative can be advantageous for the following reasons:
- The activity carried out is deemed to be that of the representative;
- The address for fiscal purposes in the country in question is that of the representative;
- Notices from the Fiscal Authorities are sent directly to the representative thus allowing for compliance within the deadlines;
- The documentation is signed and formalities are dealt with by the representative without the client having to be present;
- The client is freed from having to deal with administrative obligations.
What are the obligation of the appointed representative?
When a non-established entity carries out transactions in a territory in which it is considered taxable, either by obligation or by choice, a legal representative may be appointed for the purpose of their relationship the local Fiscal Administration. This appointment should be made prior to any transactions being carried out and made in favour of an entity domiciled in the that territory.
The appointment of a fiscal representative can be advantageous for the following reasons:
- The activity carried out is deemed to be that of the representative;
- The address for fiscal purposes in the country in question is that of the representative;
- Notices from the Fiscal Authorities are sent directly to the representative thus allowing for compliance within the deadlines;
- The documentation is signed and formalities are dealt with by the representative without the client having to be present;
- The client is freed from having to deal with administrative obligations.
22-04-2008