If your company wishes to register for VAT in France, it is essential to contact the French tax authorities. The Electronic Business Formalities Counter (Guichet unique) is a secure internet portal, with which any company is required to declare its creation, since January 1, 2023. There is no need to contact the tax authorities in your country of establishment.

In particular, your company will need to submit the following documents:

• The VAT registration form(s) completed in the language of the country
• A copy of the articles of association
• An extract from the trade register
• A certificate of VAT liability
• Power of attorney (if using a fiscal agent)
• Proof of activity on the territory of the country concerned: a contract, an order form, etc.

The French tax authorities may require some of these documents to be translated into French.

If your file is complete, it generally takes one month to obtain the VAT number. The competent administrative service (DRESG) which deals with foreign companies being totally disorganized, the real average time to obtain your French VAT number is between 3 and 6 months.

Non-European companies cannot register for VAT themselves in France. They have to do it through a VAT representative. This is a local company that will represent you to the local VAT authorities. He is responsible for the respect of all your VAT obligations, including those of which he was not aware. For this reason, he may require a deposit (e.g. a bank guarantee) from you before accepting the representation assignment. However, companies established in 42 non-EU countries (e.g. the UK) are exempt from appointing a VAT representative.

European companies are not obliged to appoint a tax representative. However, to facilitate their relations with the local tax authorities, they may appoint a proxyholder (agent) to carry out the tax formalities on their behalf. In this case, it is not necessary to issue a bank guarantee. The company remains solely responsible for paying its VAT debts.

Your company must keep ledgers sufficiently detailed to enable the application of VAT and its control by the French tax authorities.

Companies selected by the French administration on the basis of a sample have to respond to the statistical survey even if there is no actual flow of goods during a given month. It must be filed at the latest on the10th day of the following month.

As a supplier of goods or services, your company is normally obliged to issue an invoice with VAT to its customer. This is the general rule. However, there are many derogatory situations which transfer this obligation to pay tax to the customer himself. These situations are known as "reverse charge" situations.

The special reverse charge rules have been introduced in France for foreign companies:

For supplies of goods:

The reverse charge is applicable to all domestic supplies of goods made by a business not established in France, provided that the customer is VAT registered in France.

For supplies of services:

The reverse charge is applicable to all domestic supplies of services made by a business not established in France, provided that the customer is VAT registered in France.

The VAT Directive lays down the minimum information that you must include on your invoice. In some cases, countries may add additional compulsory information. Particular attention should be paid to the conversion rates when the currency used on the invoice is not that of the country in which the transaction takes place, and to the specific statements justifying the legal reason why VAT is not charged.

France has 4 differents VAT rates :

• Standard rate : 20%
• Intermediary rate : 10%
• Reduce rate: 5,5%
• Super reduce rate: 2,1%

It is possible to send invoices in paper format. Electronic invoicing will become mandatory from July 1, 2024 for large companies, from July 1, 2025 for medium-sized companies and from January 1, 2026 for all others. The deployment of e-reporting obligations (transmission of sales in real time) will follow the same schedule.

There are several methods to obtain refunds of French VAT. The practical formalities for reclaiming foreign VAT will differ depending on whether or not your company is established in Europe and/or is identified for VAT in France:

• If your company has a VAT number in France, it will have to submit a refund application in the form and within the timeframe required by local regulations. In principle, the VAT credit is automatically transferred to the following month. However, an actual refund can be requested under certain conditions. The minimum threshold is €760 per quarter (or €150 annually).

• If your company is established in a European country and does not have a VAT number in France, it will have to apply for a VAT refund electronically from its country of residence, in the form and within the time limits required by Directive 2008/9.Claims may not encompass a period greater than one calendar year (€50 minimum) or shorter than three calendar months (€400 minimum). Claims may not straddle two calendar years. In practice, you may file a maximum of four claims, each for a minimum time period of three calendar months, plus a supplementary annual claim.

• If your company is established outside Europe and does not have a VAT number in France, it will have to appoint a tax representative to submit its refund application in the form and within the time limits required by the 13th Directive.

VAT incurred on purchases, imports or intra-Community acquisitions of goods and services can be reclaimed by a foreign company provided that these expenses are for taxable activities and provided that the appropriate documentation is available.

No input VAT can be recovered on any of the following expenses:

• Accomodation expenses incurred for the benefit of the company's managers or employees.