In most European countries, companies based outside the European Union are required to appoint a fiscal representative to deal with VAT issues. The situation is different in the Czechia. You can find out everything you need to know about fiscal representation in the Czech Republic here.
Antonia Klatt
Last Updated on 22 October 2021
What is a fiscal representation?
In general, a fiscal representative is a service provider that EU companies can appoint on a voluntary basis and non-EU companies must appoint on a mandatory basis. This representative then takes care of the tax obligations of the company represented. The following service providers can normally act as fiscal representatives in the EU:
- Tax consultant
- Lawyers
- Chartered accountants and sworn accountants
- Notaries
- Forwarding companies, insofar as they provide assistance in matters of import duties
We have also summarized general information on fiscal representation in the EU for you on our overview page.
What does a fiscal representative do in the Czech Republic?
In most countries of the European Union, a fiscal representative takes care of at least the following tasks:
- Registration for sales tax
- Filing of pre-notifications and tax returns
- Submission of other tax documents
Depending on local legislation, a fiscal representative in various European countries can also take care of the payment of sales tax, the payment of wage taxes, customs and many other tasks. He usually appears in his own name to the local authorities and takes responsibility for the company represented.
When do I need a fiscal representation in the Czech Republic?
The Czech Republic is one of the few European member states in which companies based outside the EU are not required to have a fiscal representative. However, according to Section 110c of the Czech Sales Tax Act, it is still possible to hire a fiscal agent. The latter is not responsible for the tax tasks instead of the client, but acts on behalf of the client, but can still help EU and non-EU companies with the fulfillment of VAT obligations.
Fiscal representation in other European countries
In contrast to the Czech Republic, in many other European countries the appointment of a fiscal representative is mandatory for companies that are not based in the EU. Since a decision in 2004, companies based in the EU have been able to take care of their tax tasks themselves, but appointing a specialized representative can still save a lot of time, money and effort.
More information about representation in sales tax tasks in Germany, Poland, and co. can be found on our country-specific pages.
| country | mandatory fiscal representation for non-EU companies and sellers |
| Germany | yes |
| Netherlands | yes |
| Austria | yes |
| Polen | yes |
| Czech Republic | no |
| Spain | yes |
| Italy | yes |
| France | yes |
For many multinational sellers who are active in several European countries, importers and exporters, and mail order companies who sell goods via marketplaces such as Amazon, it can also be worthwhile to hire specialized service providers such as hellotax. Our international team can take care of your VAT registration, the submission of VAT returns, the payment of VAT and many other tasks not only in one country, but throughout the EU. Our tax consultants also work closely together and our clients therefore receive all information bundled, which further reduces the administrative and financial effort.
Contact us today and simplify the handling of your tax obligations.
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Frequently Asked Questions
A fiscal representative is usually a service provider who represents a company on tax issues before the authorities in Italy. Among other things, he takes care of sales tax and customs matters. It also makes it easier to overcome language barriers when contacting the local authorities. In the Czech Republic, he is replaced by a fiscal agent who can be appointed on a voluntary basis.
A fiscal representative as such is not necessary in the Czech Republic. Instead, however, a fiscal agent can be appointed in the Czech Republic. This also takes care of, among other things, the registration for sales tax, advance sales tax returns, tax returns, the payment of sales tax and much more, but in the name of the person represented and not under his own responsibility.
In the Czech Republic there is no obligation to have a fiscal representative. This means that even non-EU companies do not necessarily have to appoint a representative. This makes the Czech Republic an exception in the EU. However, a fiscal agent can be appointed voluntarily.
