If your business activities require you to be registered for VAT in another country, you may need a local tax representative. They will usually be jointly and severally liable for the VAT owed by your business. Several EU states require a local VAT agent to act for non-EU firms. There is no need for EU companies to have a VAT representative in other member states.
As a fiscal representative is jointly liable for the trader’s taxes, it is standard practice to require a security deposit or bank guarantee to mitigate against potential risks.