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VAT Registration in France

Register your company for VAT in France

Should a foreign company deliver “taxable supplies” of products or services in France, it might be obligated to register for VAT. Under the EU VAT Directive, international businesses must legally register for VAT in certain situations to report taxable activities and declare the applicable VAT.

It is essential for all businesses engaging in commercial operations in France to assess their compliance responsibilities and, if necessary, register prior to initiating taxable activities.

Register for VAT in France

Here are some common examples of taxable transactions:

  • Distribution of goods from France to another EU Member State.
  • Local provision of goods not under the reverse charge mechanism.
  • Remote sales of goods from a foreign country to private consumers in France (if the yearly sales surpass EUR 10,000 or if the enterprise chooses to be taxed in France).
  • Sending goods from France to a country outside the EU.
  • Importing goods into France from a non-EU country starting January 1st, 2022.
  • Intra-community purchases within France.

Taxable Persons:

In France, under Article 256A, a taxable person is:

    • Independently carry out an economic activity and their actions are for that activity, not personal gain.

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Registration in France

Registration Requirements

In terms of business registration for VAT in France, there is no minimum turnover threshold that would exempt a business from registering. However, some businesses may be eligible for the Small Business Exemption (SBE) regime, which allows from having to account for VAT.

According to Article 286b of the Tax Code, businesses that must register for a VAT number includes:

  • Taxable persons who provide goods or services that allow for an input VAT deduction.
  • Taxable persons who make intra-Community acquisitions of goods subject to VAT.
  • Taxable persons who are accountable for import VAT.
  • Persons who receive services subject to the reverse charge mechanism.
  • French service providers who offer services that make the customer liable for VAT in another EU member state.

Voluntary Registration

 Voluntary Registration is not applicable in France. A business must register in France if it carries out transactions that require a VAT identification number. If it does not, then it cannot register. Failure to do so renders the business ineligible for registration.

Exemption from Registration

There is no exemption from registration available in France. However, certain businesses may qualify for the small business exemption regime, which allows them to avoid accounting for VAT.

Group and Divisional Registration

  • Group Registration:

VAT Group is optional. To form a group in France, the members must be taxable persons who have their seat of economic activity, permanent establishment, domicile, or usual residence in the country. Additionally, the members should have close financial, economic, and organizational ties.

  • Divisional Registration:

In France, companies that have legally formed a single unit but are geographically dispersed, such as those with branch offices in various parts of the country, are considered a single taxable entity.

Registration – Foreign entities

Foreign entities that provide taxable supplies in France and are subject to VAT reporting and payment obligations or are required to register for VAT, such as in the case of imports, are subject to the same registration requirements as residents. Therefore, all non-resident entities engaged in taxable transactions for which they are liable must typically register and report VAT.

 

Which information is needed to obtain a French VAT number and register?

The appropriate form must be completed and submitted with the following documentation to the French Tax Office:

  • If applicable, a VAT certificate proving that the business is VAT registered elsewhere in the EU.
  • Articles of incorporation and the translation in French of some provisions.
  • An original power of attorney.
  • A section of the company’s national trade registry.
  • A copy of the passport of the legal representative.
When to make a request

Businesses should seek their French VAT number promptly once they identify a need for it based on their transactions. While there is no fine for delayed VAT registration, tax authorities may impose penalties for tardy declarations, leading to delayed payments. These penalties can amount to as much as 80% of the undeclared VAT.

 

How much time will it take?

It typically takes around four to six weeks from when you submit your application to when you receive your French VAT registration certificate. Nonetheless, it is important to consider that collecting the necessary documents and getting a translation of your articles of association might extend this timeframe.

 

Fiscal representation

Non-EU businesses registering for VAT in France need to appoint a French fiscal representative. This representative holds joint and several liabilities for the company’s tax obligations. However, there’s a decree that exempts companies based in certain non-EU countries from this requirement. After Brexit in 2021, UK companies are no longer required to designate a fiscal representative in France for VAT-related matters.

 

VAT Representatives

A VAT representative is required for taxable transactions in France, distance sales to French customers, and intra-Community acquisitions of goods or services located in France.

 

According to Article 289 A of the General Tax Code, a non-EU business that is subject to French VAT or is required to fulfill French reporting obligations must appoint a VAT representative, unless it only engages in transactions subject to the VAT suspension regime or supplies natural gas, electricity, and heat to French recipients under the reverse charge mechanism.

 

Distance Sales

As of July 1, 2021, the OSS regime may simplify the registration process for distance sellers located within the EU and for those selling low-value goods from outside the EU.

 

 

 

Last Updated: 27/10/2023

Disclaimer

The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax

 

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