Beyond the legal obligation, tax representation is a simple and economical alternative to physical implantation by creating a branch or a subsidiary.
In fact, tax representation allows foreign companies to enter the Portuguese market while avoiding the costs and constraints of physical implantation that involves the creation of a structure and the management of a separate accounting.
In particular, a foreign company that has appointed a tax representative in Portugal will not be subjected to the corporate tax in Portugal.
The activity is completely remote-controlled from abroad through the tax representative who will handle all the VAT-related obligations required by the Portuguese tax administration: obtention of a VAT number, submission of periodic declarations and VAT payment, submission of requests for VAT refund, etc…