Fiscal representative in France: this is how the representation in VAT matters works

Although there has been no obligation to appoint a fiscal representative for European companies in other European countries since 2004, the appointment of a representative can still be worthwhile. We explain what a fiscal representative is, what he does and when you need one.

Was is fiscal representation?

Fiscal representatives are service providers who represent the client in VAT and customs matters. As a matter of principle, EU companies have not had to appoint a representative in other EU countries since 2004. Foreign companies, however, are obliged to appoint a fiscal representative in the EU.

There is an important difference between a fiscal representative (representative) and a fiscal mediator (agent). The appointment of an agent is voluntary for all companies and the agent acts on behalf of and in the name of the client. The representative, on the other hand, appears in his own name to the authorities and must therefore be approved beforehand. The following entrepreneurs, among others, are allowed to act as fiscal representatives in France:

• tax consultant
• lawyers
• chartered accountants and sworn auditors
• notaries
• forwarding companies, insofar as they provide assistance in matters of import duties

You can find more information about fiscal representation in the European Union on our overview page.

What does a fiscal representative do in France?

The specific tasks that an executive fiscal representative performs for the client are based on the respective agreement. In principle, however, a representative can take on the following points:

• VAT registration and filings
• Invoicing
• Accounting
• Completion of reporting obligations

The representative is also responsible for the represented company vis-à-vis the authorities in France. This means that the fiscal representative is liable for penalties resulting from late payments, for example.

When do I need fiscal representation in France?

Article 289 A of the Code Général des Impôts in France stipulates that all companies that are not based in the European Union must appoint a representative if they are liable for VAT in France or if they have to fulfill declaration obligations. For example, foreign companies are subject to tax if they sell goods to French private customers and must declare if they import goods into the EU via France.

This rule does not apply to companies that are based in a country that has signed an agreement of administrative tax assistance with France. These include Australia, India, Iceland, Japan, Mexico, New Zealand, Norway, South Korea, and South Africa. Companies can then register for VAT in France without a representative. American, Canadian, Swiss and Chinese firms must, however, appoint a fiscal representative in France.

Sellers who are based and registered in an EU country no longer have to appoint a representative in France since 2004 and can, for example, independently apply for a VAT identification number. Since there are still complications for companies from these countries due to language hurdles, the different tax deadlines in France and the local peculiarities with regard to tax law, it can also be worthwhile for them to appoint a fiscal representative. This way, deadlines can be met, obligations reliably fulfilled and penalties avoided.

Appointment of a fiscal representative in France

In principle, a foreign entrepreneur who is obliged to appoint a fiscal representative can only appoint a single representative, who then takes care of all tasks in France. The fiscal representative can be chosen freely. He must be resident in France, be liable for VAT there, submit regular tax returns and also be recognized by the corporation tax authority responsible for him.

In order to take up the activity as a representative, he must send a written application to the tax office, which includes a designation by the taxpayer resident outside the European Union. The authorities in France will then notify the representative in writing of the granting or refusal of accreditation. The client must also sign an exchange of goods declaration (DEB) in order to be able to appoint a tax representative.

The representation remains valid as long as the termination is not communicated to the administration in France. As a result, a taxpayer from outside the EU who no longer carries out taxable transactions in France must terminate the appointment of the representative. The former representative informs the corporate authorities immediately in writing by sending the notice of termination of the designation by the taxpayer.

Special case: limited fiscal representation in France

As in some other European countries, it is also possible to appoint a limited or small fiscal representative in France. This simplified form of fiscal representation is suitable for importers with intra-community onward deliveries.

In this case, the representative only has one task. He has two sales tax identification numbers: one company-specific for his main activity and one specific for all activities that are carried out as a one-time representative. Under the second number, he submits the quarterly declarations for the client together with his name, designation and address to the tax office.

However, the small fiscal representative does not take care of registration for VAT purposes, VAT payments and other tasks for the foreign entrepreneur.

Fiscal representation in other European countries

Although EU companies are no longer required to appoint a fiscal representative since 2004 and the guidelines for tax representatives are similar within the EU, local legislation is always decisive. More information on fiscal representations in Spain, Germany, Italy and co. are summarized for you on our country-specific pages.

country	mandatory fiscal representation for non-EU companies and sellers
Germany	yes
Netherlands	yes
Austria	yes
Polen	yes
Czech Republic	no
Spain	yes
Italy	yes
France	yes

For sellers and entrepreneurs who are active in several countries of the European Union at the same time, it can also be worthwhile to hire a specialized VAT service provider, such as hellotax. Our international team of tax consultants can represent you not only in France, but in a number of EU countries. We take care of your VAT registration, submissions, VAT payments and more and since you receive all information bundled, your administrative and financial effort is additionally reduced.

Contact us today and simplify the handling of your tax obligations.

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