First of all, the excise duties representative may be a legal or natural person permanently resident or established in the member state of destination. Further more, they must be authorised by the competent authority.
Also, the mandate for representation has to be submitted to the competent authority by the seller or by the tax representative. Finally, they must follow the instructions set by the tax authority.
Secondly, a person established in the state may be approved by the competent authority as a tax representative. Furthermore, they will be able, to act as an agent for a non-state vendor delivering excisable products. Also, for duty-paid in the member state of dispatch and to private individuals in the state under distance selling arrangements. The tax representative is liable for the payment of the excise duty on excisable products delivered to the state. Finally, this is by or on behalf of the non-state vendor for whom they are acting as an agent for.
Compulsory in most of member states
Thirdly, for excise duties, the representative is compulsory in most member states. Also, depending on each situation they will take the role of a tax liable person and/or payer, jointly or not. Finally, you can appoint a distinct tax representative(s) for VAT and excise purposes.
Excise duties representative – Approval process
Fourthly, any person seeking approval as a tax representative must be established in the member state and:
– the application for registration should be sent to the appropriate competent authority
– provide a letter from a non-state vendor in another member state appointing the applicant to act as a tax representative on the non-state (non-resident) vendor’s behalf
– provide any other information that an officer may require in any particular case.
Also, on receipt of a written application the officer should record the application in the CRMS system and open a tax representative trader approval file. Finally, a meeting could be arranged with the applicant for further clarification purposes.
First, the tax representative can use deferment arrangements to account for excise duty on duty-paid goods they receive.
Second, he should also create a record of anticipated arrivals and effectively pay the excise if the named shipment is proved to reach the member state of arrival – whether or not it actually arrives at its destination.
Third, excise goods shipped as ‘excise paid’ means the excise has been paid and remains secured in the EU member state of dispatch.
Also, the tax representative is required to pay the appropriate excise duty, by means of an Excise Duty Entry (EDE). The EDE can be paid by deferred or direct payment.
Drawback / refund
Finally, this excise amount can be reclaimed in the original EU member state, under ‘drawback’. This happens once the registered importer or tax representative procedures are confirmed. This is provided that they have been completed satisfactorily in the nominated EU member state of receipt.
Also, they are also in charge of requiring drawback for unused excise stamps and refund of excise duties for undeliverable products.
Useful links for coss-border traders :
– Europa website on excise duties topics