VAT is the value-added tax on goods and services tax levied incrementally on the price of a product or service at each point of production, distribution, or sale to consumers. VAT compliance is the commitment to submitting periodic VAT returns to jurisdiction-specific tax authorities according to certain parameters such as predetermined formats and requirements based on business nature and size. In a nutshell, VAT compliance means filing and reporting an entity’s VAT return periodically and as stipulated by the designated VAT authority.
Direct representation means to appoint a professional to represent an entity as jointly liable for the import formalities, including duties, taxes, and relevant agreed-upon activities. The importance of such representation is acquired to clear the goods from customs on account of the applicant.
Indirect representation on the other hand means that the rights and obligations have been delegated and transferred to the representative to take over all stipulated procedures. The Primary reason for pursuing indirect representation is when importers do not have a residence in the target market. EU customs territory could be challenging because of incalculable risks, fees, and duties.