VAT - Company based in the EU
Transactions carried out in France and liable to VAT there
For certain transactions carried out in France, foreign businesses which are not based in France are liable to VAT :
- Deliveries and sales of goods when delivery is in France
- Intra-Community acquisitions made in France
- Deliveries subject to the distance selling regime, when sales are made from another Member State to France (if the annual amount, exclusive of taxes, is more than €35,000)
- Certain services provided in France or for the benefit of customers residing or based in France
- For some of these transactions, VAT is no longer paid by the company based outside France but directly by the purchaser of the goods or the user of services when the latter has a VAT ID number in France (reverse charge mechanism).
You must register your company, and then file your returns and pay the VAT to the Foreign Business Tax Department (SIEE) that reports to the Directorate for Residents Abroad and General Services (DRESG). The Department’s contact details are as follows :
Service des impôts des entreprises étrangères (SIEE)
10, rue du Centre
Telephone: + 33 1 72 95 20 31
E-mail : firstname.lastname@example.org
Appointing a tax representative in France
Businesses based in another EU Member State are not obliged to appoint a tax representative in France.
However, to ensure a smooth relationship with the French authorities, you could always appoint a representative who will carry out the procedures on your behalf and under your responsibility. In this case, you should execute a power of attorney and send the original or copy to the Foreign Business Tax Department.
This power of attorney must be exclusive, written in French, signed by a person authorised to make company decisions and accepted by the representative in question.
The power of attorney must include the following information:
- Name, business name, address and SIRET number of the appointing Community taxable person, and the full name and position (functions performed within the company) of the person signing the power of attorney
- Name, business name, address and SIRET number of the representative and the full name and position (functions performed within the company) of the person accepting the power of attorney
- The exclusive nature of the power of attorney
- The period of time the power of attorney is valid
- Formalities that the representative is authorised to perform
- Banking details (bank address and account number) of the Community taxable person (company name) or, where appropriate, of the representative.
MAJ DINR PRO 05/02/2021