TAX REPRESENTATION : FRENCH VAT FOR FOREIGN COMPANIES


Foreign companies liable to value added tax ("VAT") in France because of their business have to respect a certain number of obligations and, in some case, must also appoint a tax representative in France if their country of establishment is outside the European Union.

IS YOUR COMPANY LIABLE TO VAT IN FRANCE ?


The companies non established in France but liable to VAT in France must ask their registration in France for VAT purposes and must fulfill a certain number of tax returns.

 

For instance, the following operations are subjected to VAT in France :

  • deliveries of goods in France to clients not liable to VAT in France (B2C transactions)
  • intracommunity acquisitions of goods in France 
  • imports of goods in France
  • "distance selling" of goods from a EU country to individuals delivered in France (e.g. e-transactions) exceeding a threshold of 35.000 € (VAT excluded) per year
  • some services as : 
    • services linked to a building located in France
    • electronic services
    • specific lease of means of transport

Those operations are subjected to VAT in France even if the company is not established in France (branch, office, warehouse).

 

è Companies established in a Member State of the European Union can fulfill their fiscal declarations on their own.

However due to the complexity of the French tax law, they can appoint a tax representative in France to act on their behalf before the French tax administration.

 

è Companies established outside the European Union must appoint a tax representative in France (under exceptions : see the list of exempted countries).

 

 

This tax representative must be a French company (a sudsidiary or a service provider like ILIADE).

You should notice that a notary or a lawyer are not allowed to act as your tax representative, only a private company can.

REGISTRATION TO VALUE ADDED TAX IN FRANCE


ILIADE assist foreign companies in getting a French VAT identification number.

 

 

ILIADE shall take care of all the formalities with local VAT authority to obtain and activate a VAT registration number in the shortest period of time and will also make the necessary initiatives to obtain a Customs number ("EORI") for imports (when needed).

LIMITED VAT REVIEW


ILIADE shall conduct a limited review of the economic activities engaged in by the company in France.

 

Such a review of the flow of goods / services, and the flow of invoices enables us to confirm the various VAT obligations in France :

  

è Periodicity of filling of the VAT returns
è Application of French VAT to purchases and sales invoices
è Data whose disclosure in invoice is mandatory 
è Intrastat
è And optimize, when possible, the VAT procedure

MANAGEMENT OF VAT OBLIGATIONS IN FRANCE


The following services are foreseen in this respect :

 

 

è Processing of compliant sales ledgers in view of the preparation of the periodical VAT returns  
è Preparation, signing and filling of periodical VAT returns
è Preparation, signing and filling of the periodical Intrastat returns (if any)
è Limited VAT review