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Fiscal Representative in Germany - Main Roles

Fiscal Representative in Germany

Updated on Wednesday 06th March 2024

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The role of the fiscal representative in Germany can be essential to the good and compliant functioning of the business. Such an appointed third party (individual or company) can oversee the timely filing of the tax reports, as well as the annual tax filing, among other tax-related duties.
 
While there is no more mandatory need to appoint a tax representative for VAT registration in Germany (as may very well be the case in many other EU Member States), working with a local tax agent is advisable for many non-EU companies, for EU companies that trade in Germany, as well as in other cases.
 
The decision to appoint the fiscal representative in Germany can be made as early as the incorporation phase.
 
For EU and non-EU companies alike, understanding the tax implications is important while doing business in Germany. Our lawyers in Germany can provide complete information about the relevant tax laws, as well as the ongoing compliance regulations.
 

When do companies need to appoint a fiscal representative in Germany?

 
A tax representative or agent is required in many cases in Europe in the situation in which a foreign, non-EU company needs to register for VAT purposes in a Member State. While Germany does not adhere to this requirement specifically (unlike many other EU countries), the fiscal representative can still assist during this important VAT registration process, as well as with many other tax matters.
 
VAT registration is usually mandatory for resident German companies, and it is also required as an obligatory step for non-resident companies that engage in the supply of goods or services. Considering these mandatory registration provisions, appointing a fiscal representative in Germany who will oversee this registration is a beneficial step for non-EU companies, as well as for resident businesses.
 
If you would like to know more about the role and the liability of the fiscal representative, the tax experts at our German law firm can answer your questions.
 

What is the role of the German fiscal representative?

 
The fiscal representative can assist with the following:
  • Ensure that the company is duly registered for VAT purposes in Germany;
  • Make accurate and timely VAT and tax submissions, periodically or as otherwise required by law or as specifically requested by the German tax authorities;
  • Communicate with the tax authorities as needed, as well as respond to inquiries;
  • Handle other relevant tax-related matters;
 
Because the role of the fiscal representative is so connected with tax matters, we also remind investors of the main taxes for companies applicable in Germany:
 
  • 15% corporate income tax (15.825% including surcharge);
  • Municipal trade tax of a minimum of 7% or ranging between 14 and 17%;
  • Standard value added tax of 19% plus two reduced rates of 0% and 7%.
 

How can your team assist companies?

 
Our attorneys in Germany specialize in business and commercial law, as well as tax law. An important part if our activity focuses on assisting foreign investors who wish to open a company in Germany or set up a permanent establishment for a company incorporated in another country. This also means that we have experience in answering questions about taxation and fiscal matters, including those relating to the appointment of a fiscal representative in Germany.
 
In addition to our fiscal representation solutions, and the assistance we provide for VAT registration purposes, our partner accountants in Germany can offer bookkeeping and general accounting solutions for companies of all sizes and activating in all business fields.
 
You can contact our lawyers as soon as you need to appoint a fiscal representative in Germany, as well as at any point when you require legal counsel.