Can a Foreign Company Doing Business in Germany Appoint a VAT Fiscal Representative?

Yes, but the application is very limited.

A foreign business with neither seat, place of management or branch in Germany may only appoint a fiscal representative to fulfil all German VAT obligations on its behalf and for its account where its only German sales are VAT-free and it has no input tax to be deducted. The fiscal representative may be anybody (person, firm or organisation) entitled to offer tax consulting services.

At first sight, this provision would seem to be superfluous in that a fiscal representative may only be appointed by those who would neither pay, nor claim a refund of, VAT. Indeed, its application in practice is confined to only a very few special cases.

This position contrasts starkly with the corresponding rules in most other EU countries, which allow (or require) foreigners without any form of local permanent establishment or physical presence to appoint a fiscal representative to represent them in all their dealings with the VAT authorities. However, the