Why appoint a Tax agent ?
Appointment of a tax agent ensures for the proper settlement of VAT tax to companies having their official seat in one of the states of European Union that perform activities subject to VAT tax in other European states.
Examples of taxable activities :
- intra-Community deliveries and purchases to and from other Member States,
- import and export to and from the territory of European Union,
- construction services and services related to real estate,
- storage of goods and consignment stocks,
- distance sales in the case of exceeding thresholds (see our web page distance sales),
- sales to consumers and other entities who are not VAT payers,
- VAT settlement based on the “reverse charge” principle,
- certain purchasing/reselling operations.
If you perform one of the business operations listed above, you are probably obliged to register for VAT purposes in a given Member State. By obtaining a local VAT number you will be able to ensure the correct settlement of output and input tax.
To this end you may appoint a tax agent who will assist you with any administrative formalities, ensuring full compliance with local legislation and protection against loss of the possibility of VAT recovery or being charged with penalties in case of a violation of tax regulations.
What is the role of a tax agent ?
- A Tax agent carries on your behalf all of the formalities required for registration for VAT purposes (drawing up forms and registration documents in the scope of VAT tax, ordering translation services, and support with procedures until receipt of a local VAT number).
- Duties of a tax agent include : submission of tax declarations (both VAT declarations as well as recapitulative statements of intra-Community trade), submission of requests for tax returns, submission of statistical declarations (Intrastat) and managing VAT payments (informing on the amount of due VAT payments).
- A Tax agent ensures compliance with tax regulations beginning with the analysis of a given case, through the control over correctness of documents, to the provision of information on all of the obligations of the taxpayer on an on-going basis (issuing invoices, amendments to regulations.
- A Tax agent manages all correspondence and exchanges with tax authorities and is also present to assist, at the client's request, during a tax control.
A Tax agent or a tax representative ? To learn more about differences between a tax agent and a tax representative please contact ASD Group.