The Role of a Representative in VAT Recovery

In the VAT recovery process, certain countries require a fiscal representative for foreign businesses that are not established in that country. A fiscal representative is a local entity that acts on behalf of the foreign business, taking responsibility for handling VAT filings and payments, and is jointly liable for VAT debts. This requirement generally applies to non-EU businesses registering for VAT purposes in many European countries. 

Countries where a fiscal representative is often needed include France, Spain, Italy, and Poland, among others. However, some countries like Germany, the UK, and Ireland allow direct VAT registration for non-EU businesses without the need for a representative. Each country has its own regulations, and the requirements may vary depending on trade agreements or treaties in place with the foreign country. 

In some cases, businesses may still opt to appoint a representative for VAT recovery purposes even if it’s not legally mandated. For instance, a service provider can manage the VAT refund process on behalf of the claimant company, simplifying VAT recovery procedures. This representative role may also extend to receiving funds, further streamlining the process for the business seeking VAT refunds.

This Feature in VAT4U helps managing the different Representatives to then speed up the VAT Claim process. The Representative can then be selected during the Claim Generation process.

How to Add a Representative

To add a new representative, click the Add New Representative button. 

You will need to provide the following information:

• Representative Company: Select the appropriate company from the dropdown
  menu.
• Representative Contact Person: Input the name of the individual responsible for handling VAT matters.
• Power of Attorney (PoA) File: You can generate a Power of Attorney document directly within the system or upload one from your computer.
• Select Countries: Choose the countries for which this representative will be responsible.

This is how it looks in the system:

What is a PoA? 

A Power of Attorney (POA) is a legal document that grants one person the authority to act on behalf of another person in legal or financial matters. This authority can be broad or limited, depending on the specifications outlined in the document.

Please note that certain EU countries may have specific requirements for the Power of Attorney. For example, countries like the Czech Republic, Slovakia, and Romania may require multilingual PoA documents, while Poland may have unique form requirements. For detailed guidance on these requirements, feel free to reach out to support at support@vat4u.com.

After entering the required information, the representative will be added to your list, showing the "Modified At" date and the name of the person who made the changes. You can easily edit or delete entries as needed.