Cross-border Business Sharing

What is a tax representative?

November 18, 2020

Fiscal Representative For companies providing goods or services in European countries, the tax representative is authorized to be the tax representative in the target country. The tax representative is responsible for the tax related affairs of the authorized company, such as applying to the tax authorities for tax number, inquiring for filing and tax declaration, etc. at the same time, they are jointly and severally liable for the value-added tax of the authorized company, that is, tax problems For example, in case of tax evasion, tax evasion, tax evasion and other anomalies, they will bear corresponding responsibilities according to the law of the country, mainly the liability for compensation.

Conclusion: it is risky for tax representatives to register and declare vat for offshore companies, but there are also risks for sellers.

1) Seller risk: may need to pay security deposit or tax by the tax representative, there is a risk of fund insecurity;

2) Tax on behalf of the risk: Sellers tax evasion, will produce joint and several liability for compensation, beyond the means.

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