Paweł Cabaj
Head of Business Development
Entrepreneurs from outside the European Union must take into account a variety of tax regulations that depend on the country in which they operate and the type of transactions they carry out. Both the sale of goods, the provision of services and import or transport may be subject to VAT depending on local regulations. In many countries, companies from outside the EU cannot independently register as VAT taxpayers or settle declarations. In such a case, they must appoint a tax representative (tax agent).
Tax representation – for whom?
A company from outside the European Union that plans to conduct business activities and carry out VAT-taxable transactions in the EU may be subject to the obligation to appoint a tax representative. Such a requirement exists in, among others, Poland (exceptions are made for companies from the United Kingdom and Norway), Romania and Hungary. This requirement applies uniformly to companies of all sizes – from start-ups entering European markets to international groups conducting complex commercial transactions in other markets. Depending on individual needs, KR Group can also support operations as a single point of contact for VAT matters in the Central and Eastern Europe region.
At KR Group we have been supporting our clients for years as a trusted tax representative in VAT settlements, guaranteeing the fulfilment of all due obligations before the Tax Office in the area of submitting VAT declarations and meeting other tax obligations.
Tax representation at KR Group
The provision of tax representation services involves significant risk and responsibility, which is why KR Group, as one of the few companies on the market, provides secure and comprehensive support in this area, as a complement to the VAT support and tax settlement service.
Acting as a tax representative, KR Group enables the conduct of business activities in the CEE region, taking over all obligations related to VAT settlement and the representation of the client before the tax authorities. The appointment of a tax representative takes place on the basis of a written agreement, which is subsequently submitted to the tax authorities.
For over 25 years, our experts and tax advisors have been ensuring correct VAT transaction settlements, proper reporting and the tax representation service for foreign companies in the Central and Eastern Europe region. We combine knowledge with the most modern technology, which means that our support methods minimise VAT tax risk and increase the financial security of the company. Our clients unanimously agree that having a trusted tax representative helps to meet the stringent legal requirements arising from VAT regulations in the countries of the European Union.
Tax representation – KR Group offer
- VAT registration for domestic and foreign companies.
- Ensuring ongoing compliance with VAT regulations, monitoring and implementing procedures enabling full or limited compliance with VAT regulations.
See more: Monthly VAT Compliance. - Analysis of tax obligations, rates and local and cross-border regulations.
See more: Tax advisory. - Support and representation before the tax authorities in matters related to VAT.
- Analysis of documentation, preparation of procedures and recommendations to minimise the risk of errors.
- Representation during VAT tax audits.
- Identification of sources of tax risks in the area of VAT settlements and the presentation of recommendations for preventive measures.
- Handling of Intrastat services.
- EORI registration required for entrepreneurs importing and exporting goods in the EU.
- Support in obtaining a VAT refund.
- Preparation and submission of VAT corrections for previous periods.
FAQ
Who is a tax representative?
A tax representative (tax agent) is a person or company that represents an entrepreneur in matters relating to VAT obligations in a given country. The tax representative is jointly and severally liable for the VAT obligations of their clients. In practice this means that the representing person bears responsibility for incorrect VAT settlement, untimely submission of declarations and the settlement of tax liabilities.
The appointment of a tax representative takes place on the basis of a written agreement, which must be submitted to the local tax authorities.
Who must have a VAT tax representative?
The VAT tax representation service is dedicated to entities from outside the European Union. These companies must appoint a tax representative in the event of wishing to commence operations within the EU, making supplies of goods or services, importing or engaging in cross-border sales.
Which companies do not need to have tax representation?
British and Norwegian companies are exempt from the obligation to appoint a VAT tax representative in Poland; however, there are no such exceptions in other Central and Eastern European countries where the obligation to appoint a tax representative also exists (Hungary, Romania). Appointing a tax representative enables the minimisation of tax risk by ensuring correct VAT settlements in accordance with local regulations. In addition, using the services of a representative reduces administrative costs, simplifies tax reporting and speeds up the handling of cross-border transactions.
Tax agent – why choose KR Group?
The VAT representation service is a complement to our VAT support. Cooperation with KR Group means: minimisation of the risk of VAT-related penalties, elimination of the risk associated with incorrect VAT settlement, and no difficulties in the event of VAT tax audits. With the support of a tax representative, foreign companies can safely conduct business in Poland or other EU countries, maintaining full compliance with regulations relating to VAT settlements and tax obligations.
Do I need to have a bank guarantee when appointing a tax representative?
Due to the joint and several liability that the tax representative bears for the company’s tax obligations arising from incorrect VAT settlement, untimely submission of declarations or failure to settle tax liabilities, when concluding an agreement with a tax representative a bank guarantee issued by a reputable bank with its registered office in the territory of the European Union is also required. The bank guarantee may be replaced by a deposit.
