Fiscal Customs Clearance

Fiscal customs clearance / representation is a term of EU sales tax law. This is a regulation that provides certain simplifications for importers with regard to import sales tax and sales tax information in connection with imports from third countries into the EU. To do this, however, certain conditions must be met.
Fiscal customs clearance/representation is specifically intended for companies that import goods from a third country into the EU via an EU member country in which they are neither based nor have any other taxable sales. The imported goods must also not be destined for the importing country, but must be transferred to another EU country. The basic idea of fiscal representation is to relieve companies of administrative work and costs through sales tax pre-financing.
Beneficiary companies can – if the requirements are met – use a fiscal representative to handle the VAT formalities when importing. Only customs clearance then takes place in the importing country. The goods must then immediately be transported on to the actual EU country of destination and will then be treated as an intra-Community delivery.
The fiscal representative takes care of all sales tax obligations in the importing country for the company that it would otherwise have to fulfill itself. He takes care of the prescribed reporting and declaration obligations and prepares the sales tax return. The company does not have to do this itself and register for VAT in the importing country.
In Germany, tax advisors, auditors, lawyers and freight forwarders, among others, can act as fiscal representatives. In this sense, German fiscal representatives support importers from other EU countries when importing via Germany. Most EU countries provide comparable options for fiscal customs clearance/representation in their respective areas.