Trading with any of the European country has become convenient nowadays. Any foreign company willing to trade with the European countries require to register for their taxation system. The VAT registration should be done with the local tax authorities to initiate further trading operations. For this a local fiscal representative can be appointed from the respective country from Europe.
Any company not established in the European Union has to comply with the VAT system and register for the VAT through the local fiscal representative. The registration allows the company to operate smoothly in the European countries and earn profits without any restrictions. There is no need to have an office in the European countries for the company if registered for the VAT. They just need to appoint a local company to act as their tax representative and complete all the formalities related to the registration.
However it becomes essential for any Non-EU company to appoint a local tax representative because of the language barriers and incomplete understanding of the tax obligation system in Europe. Many countries in Europe have their different local language and all the tax related documentation is done in these languages. The foreign companies are unaware of the knowledge of language and rules generally need to appoint a local fiscal representative for the tax registration.
It is the sole responsibility of the fiscal representative to declare and register for the VAT services of the foreign company. The VAT regulations and custom rules are different for every country in Europe and hence have to be verified from the representative. The fiscal representative has to get a VAT registration number for the company and fill the regular VAT returns on behalf. Due to the appointed tax representative the foreign company can operate effectively with the European countries.