The term fiscal representative often appears in connection with import, import and customs. But fiscal representation can also be helpful in tax matters. Here we explain who can represent traders in matters of tax and imports, how a fiscal representative is appointed and when a fiscal representation is worthwhile.
Antonia Klatt
Last Updated on 22 October 2021
What is a fiscal representative?
According to Section 22 of the Sales Tax Act (UStG), foreign companies that import goods into Germany and are therefore liable for import sales tax can be represented by a German company in matters of tax law. The companies that are legally allowed to act as fiscal representatives include, according to Sections 3 and 4 of the Tax Advisory Act:
- Tax consultants, tax agents, tax consulting companies
- Lawyers, auditors, auditing companies, sworn accountants, auditing companies
- Forwarding companies, insofar as they provide assistance in matters of import duties
- Other commercial companies that provide assistance with import duty matters in connection with customs handling (e.g. customs clearance agents, warehouse keepers)
The regulation of the fiscal representative in Germany is a consequence of the representation reform of 2004, according to which there is no longer an obligation to appoint a fiscal representative for companies from other EU countries. You can find more information on fiscal representation in the European Union on our overview page.
What does a fiscal representative do in Germany?
After a German fiscal representative has been appointed by a foreign trader or a foreign company, he is responsible for all tax tasks in Germany. He also has the same rights as the foreign entrepreneur and can, for example, also submit applications. The tasks include:
- Fulfillment of the declaration and reporting obligations
- Fulfillment of the record-keeping obligations
- VAT return
- Summary message
The fiscal representative uses an additional German tax number and VAT identification number to fulfill the tasks. With these, he appears to the German tax office as a representative for the foreign dealer or the foreign company.
Most fiscal representatives represent several companies at the same time. In this case, the tax bases are summarized in the VAT return and the tax bases of all represented companies are summarized in the recapitulative report. In the course of the recording obligations according to § 22 UStG, however, all fees for tax-free sales must be listed separately. The names and addresses of the companies represented must also be recorded here.
When do I need a fiscal representation in Germany?
In contrast to many other European countries, there is no obligation to appoint a fiscal representative in Germany – on the contrary. According to § 22 UStG, a representative can only be appointed if the represented entrepreneur has no residence or business establishment in Germany and he only generates tax-free sales. This means that the German fiscal representation is mostly only used when goods are imported into Germany and the representative is supposed to take care of reporting obligations.
In this case, the foreign entrepreneur can appoint one or more fiscal representatives in Germany, does not have to be registered for tax purposes and does not have to comply with any declaration obligations to the German tax authorities.
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Appointment of a German fiscal representative
In Germany, a fiscal representative is appointed and appointed by a power of attorney. This must be issued before the first VAT-free transaction. The fiscal representative then receives a separate tax number and VAT identification number to carry out his work.
Fiscal representation in other EU countries
The type of fiscal representation in Germany differs greatly from representation in other European countries. There, a fiscal representative is responsible for handling VAT tasks and is appointed by companies that are subject to VAT in this sense. The scope of German fiscal representation, on the other hand, is similar to that of small or limited representations in other European countries, such as the Netherlands.
In principle, the appointment of a representative for VAT purposes is mandatory in these countries, at least for companies without a branch in Europe. Depending on local legislation, such as in the case of Spain, EU companies often have to be represented by a representative to the local authorities as well. We have summarized more information about fiscal representations in Spain, the Netherlands and co. 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 |
Specialized service providers such as hellotax can help you with German import and reporting requirements. But not only that – our international team of specialized tax consultants can also help you as a representative in VAT matters in several European countries. We take care of your VAT registration, filings and VAT collection in a large number of European countries at the same time. Since our tax consultants work closely together and sekkers receive all information bundled, your administrative and financial effort can be further reduced.
Contact us today and simplify the handling of your tax obligations.
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Frequently Asked Questions
In most EU countries, a fiscal representative is a service provider who represents a company in tax matters before the local authorities. In Germany, on the other hand, fiscal representation is only possible for companies that make tax-free sales. Most of the time, they take care of the reporting requirements and the customs process when goods are imported into Germany.
A German fiscal representative takes care of, among other things, the fulfillment of the declaration and reporting obligations, the fulfillment of the record-keeping obligations, the VAT declaration and the recapitulative statement.
In contrast to many other European countries, there is no obligation to have a fiscal representative in Germany. According to Section 22 of the Sales Tax Act (UStG), a fiscal representative can and is only appointed on a voluntary basis and also only takes care of companies that only make tax-free transactions.
In Germany, tax consultants, tax agents and tax consultancy firms, lawyers, auditors, auditing companies, sworn accountants and auditing companies, as well as freight forwarding companies and other commercial companies that provide assistance in customs handling matters (e.g. customs declarants, warehouse keepers) can act as representatives .
