The appointment of a VAT representative means that a foreign company is an active VAT taxpayer in Poland (e.g. it sells in the country or deals with import or export). If the company does not have its registered office in the European Union, it is necessary to appoint a tax representative. However, a taxpayer with a seat of business activity on the territory of a member state other than Poland may, but does not have to appoint a tax representative. Read the article to the end and find out what a tax representative for VAT purposes is.
Who can become a tax representative?
Requirements to be met by a company in order to become a VAT tax representative
- must have its registered office in Poland,
- be registered as an active VAT taxpayer
- is authorized to provide professional tax advice (excluding customs agencies which deal with customs clearance of goods imported from abroad and intended for export to another EU country)),
- within the last 2 years the company or its partners (in the case of civil and commercial partnerships) were not in arrears with payment of particular taxes.
VAT tax representative – Tasks
The main task of a VAT representative is to settle the tax for a foreign entity. This term includes preparing tax returns as well as keeping appropriate records and documentation and preparing summary reports. In addition to this, a representative may be authorized by a contract to perform other activities arising from the regulations. These include, among others, representing the company during a tax audit. Remember, a tax representative takes joint and several responsibility for tax settlements, which he/she settles on behalf of a foreign entity.
VAT tax representative – Excise tax representative
An excise tax representative is required when a foreign company sells in Poland excise goods imported from other EU countries. These goods include cigarettes, tobacco products, alcohol. The representative’s task will be to calculate and then declare and pay the excise duty in Poland.
Tax representative in customs
If the customs agency performing the customs clearance has the status of a fiscal representative, it replaces and represents the foreign importer in customs clearance and settles the import VAT on its behalf. This status of an agent means that the foreign importer may be exempt from paying customs duty in Poland.
