Under what conditions must a foreign company register for VAT in France?

Which businesses are affected?

The VAT registration obligation in France applies to foreign companies, established in or outside the European Union, which carry out certain transactions falling within the scope of French VAT.

In practice, a foreign company must register in particular if it:

• makes deliveries of goods located in France and for which the foreign company is liable for VAT,
• provides taxable services in France, for which the foreign company is liable for VAT,
• imports goods into France,
• carries out intra-community deliveries of goods from France,
• carries out intra-community acquisitions of goods subject to VAT.

Practical examples

An American company that buys goods from a French supplier before selling them to French private customers must register for VAT in France.

A Swiss company that is organizing an event in France for the benefit of French private customers.

Difference between VAT refund and VAT registration

A foreign company must distinguish between two situations:

• ‍It does not carry out transactions generating a VAT registration obligation in France (for example local purchases followed by local sales made for the benefit of a company with a French VAT number) : she can request a refund of the French VAT borne (13th Directive or 8th Directive procedure).
• ‍It carries out transactions generating a VAT registration obligation in France (for example local purchases followed by local sales made for the benefit of individuals) →she must Register for VAT and declare the tax collected and deductible via periodic declarations (CA3).

Choosing the right procedure is therefore crucial. An error (e.g. requesting a refund according to the 13th Directive procedure instead of registering followed by a refund request according to the 6th Directive procedure) leads to a rejection of the request and may expose the company to penalties.

Tax representative: an obligation for companies outside the EU

Companies established outside the European Union must designate a tax representative in France accredited by the tax authority. The latter is responsible for complying with the reporting obligations and for paying VAT.

Exceptions: some countries benefit from reciprocity agreements, which exempt their companies from appointing a fiscal representative, although VAT registration remains necessary in the cases in question. Very few countries are affected by this exception.

What are the registration procedures?

VAT registration in France is done with Foreign Business Tax Service (SIEE). The file must include in particular:

• a registration application form,
• the articles of association or extract from the foreign trade register,
• a translated copy of the statutes/corporate purpose,
• proof of activity (contract, invoices, etc.),
• the appointment of a fiscal representative, if applicable.

Once the registration has been validated, the company is granted a intra-community VAT number beginning with “FR.”

Points of vigilance

A foreign company may be required to register even if it has no permanent establishment in France.

The tax authority makes a precise distinction between autoliquidated transactions (which do not require registration) and those that require a declaration.

Failure to register when the conditions are met may result in VAT reminders, penalties and late payment interest.

Support from Cyplom Avocats

Determining the applicable regime — VAT refund or VAT registration — is a sensitive issue, which depends on the legal qualification of transactions. Cyplom Avocats, a firm exclusively dedicated to VAT, assists foreign companies in:

• analyze the nature of the transactions carried out in France,
• identify the applicable reporting requirements,
• prepare and file registration applications with the SIEE,
• support companies and their tax representatives in monitoring their reporting obligations.

Our expertise in international VAT allows you to secure your transactions and prevent any tax risk in France.

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