German Fiscal Representative

German fiscal representative or tax representative (deutscher Fiskalvertreter) is a tax authorized person who represents foreign investment companies to allow the foreign company to become more competitive and prevent a special tax burden for the investors.

If you are a company that residents in other EU countries and wants to do business in Germany such as import goods from a third country, export goods from a third country and any other operation of "purchase/resale" as well as building services, storage, organizing events, then you are obligated to be registered for German VAT with a local VAT number.

To get this, you can order a Fiscal Representative who can:

• ensure you of the respect of the tax legislation and allow you to answer the obligations as regards to local VAT
• receive a separate tax number and a VAT Registration Number from the German tax administration
• submit for you the VAT declarations including the requests for refunding for the calendar year and Intrastate
• manage the registration of your file near the tax authorities, your VAT Balance, the follow-up of the payments of VAT
• take care for you of any correspondence with the local tax authorities, including in the event of tax control

If the foreign company takes a German fiscal Representative it does not then have to register in Germany, and is not required to fulfill any declaration obligations vis-à-vis the German tax authorities.

Persons who can act as a fiscal representative in Germany

Fiscal representation in Germany can be assumed only by the persons who serves as

• Tax consultant, tax advisor and tax consultancy firma (Steuerberater, Steuerbevollmächtigte, Steuerberatungsgesellschaften)
• Lawyer, accountant, accounting firm, sworn auditor and auditing company
• Forwarding agent, where he provides support in initial submissions
• Other commercial company, where they provide support in initial submissions related to customs treatment (e.g. customs declarers, warehouse keepers)

Conditions that have to be met for use of a fiscal representative

First of all the foreign company should not conduct any turnover subject to VAT in Germany. To take advantage of fiscal representative the foreign company

• should conducts exclusively tax-free transactions in Germany
• cannot deduct input VAT
• should not have its domicile or registered office or a subsidiary in Germany or in German tax-free areas (e.g. the Free Port)
• must authorize a fiscal representative in Germany, before exporting its goods to Germany, i.e. before import of the goods via the Port of Hamburg

If a foreign company has also tax-liable transactions then it is not permitted to use fiscal representation even for the tax-free transactions.

If you need a fiscal representative, do not hesitate to contact DS Deutsche Steuerberatung GmbH.

Falls Sie weitere Fragen haben, können Sie sich telefonisch unter 02 01 - 47 89 840 (Essen) oder 030 - 847 11 860 (Berlin) an uns wenden, oder uns eine Email schreiben.