In order to be a fiscal representative for a foreign business, the fiscal representative needs to meet the following requirements:

• The fiscal representative must be legally based in the country where they represent the foreign business;
• The representative must provide a bank guarantee or financial security to the local tax authority to cover potential unpaid VAT liabilities;
• A formal written power of attorney is required between the foreign business and the fiscal representative.

However, the client also needs to meet a few requirements in order to be allowed to keep on using a fiscal representative:

• The foreign business must import goods regularly;
• Accurate and separate records must be kept to keep track of all import flows, values and associated VAT.