Maco

Maco Customs Service: brokerage, software & consultancy

How to set up limited fiscal representation

Maco has been active in limited fiscal representation (LFR) since it was introduced in January 1993 and is now an expert in the field. Every year, Maco makes thousands of declarations with LFR for hundreds of clients. The total value of the goods cleared with LFR each year amounts to 1 billion Euros.

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Maco has automated its LFR administration since it is so elaborate. The frequent contacts with tax authorities have made the rules that should be applied very clear. This may seem strange, but the VAT legislation is somewhat unclear when it comes to the correct application and the administrative obligations connected to it.

Maco screens all its clients. It is important that all parties involved know what is and what is not possible. We are regularly asked to organize complex transactions, such as ABC sales or distribution. This is possible, but we are always very strict in ensuring that all parties discharge their legal obligations. Logistic service companies play an important role as well. They often have the first contact with the importer/client. They also have information about the logistic flow that may not be clear at first sight. When goods are stored and distributed under LFR, logistic service providers play a crucial role. If Maco does not have enough confidence in the administrative capacities of a partner, we will not make an offer.

There are goods with low risks and goods with high risks. Depending on the risk profile we agree on extra obligations and checks. It is not only in the interest of Maco but also and especially in the interest of our clients that the VAT transfer goes correctly because our terms of delivery hold our clients responsible and liable if anything goes wrong.

When the LFR technique is applied in customs, importers from Germany and France, for example, declaring their goods in the Netherlands, do not have to pay import VAT.

Maco can also help and advise you if you wish to store goods in the Netherlands or Belgium or distribute goods throughout the EU.

Whether you are an importer or an exporter, located in the EU or elsewhere, Maco can advise you on all these complex issues.

Appointing Maco as your LFR

Maco Customs Service is licensed by the Dutch fiscal authority to act as a fiscal representative. If you would like to appoint Maco as your LFR, we:

  • Will need your authorization (via a power of attorney) to act as a fiscal representative
  • Will check the VAT registration number of the importer of the goods
  • Will ask you each month for a confirmation of acquisition as proof that the goods have been delivered.

As a skilled and experienced agency, Maco can take full responsibility for the VAT the importing organization has to pay. The goods can then be transferred to the importer's country or be distributed throughout the EU, without any puzzling issues. This way, limited fiscal representation simplifies and speeds up the entire logistical process.

Please contact our Customer Service for detailed information from one of our specialists.

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