Why appoint a tax representative for VAT?

Companies with their official seat outside of the European Union that perform activities subject to VAT tax in one of the EU member states are obligated to appoint a tax representative.

Here is a list 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 to another member state (please click here for Distance Selling Thresholds),
• Certain purchasing/reselling operations.

If you perform one of the business operations listed above, you are probably obligated to make registration for VAT purposes in a given member state.

To this end you should appoint a tax representative who will undertakes all administrative formalities for you. The appointment of tax representative is the condition for granting a local VAT number in a given EU member state.