A company established in another EU country can carry out transactions in France without having a place of business there. Depending on the nature of those transactions, it may still have to register for French VAT, file returns and charge the tax. The starting point is always the same: identify precisely what is sold, to whom, and where the goods are located.
This article explains the situations that generally trigger VAT registration in France for a foreign company, those where it is often not needed, how the process works and what a late registration can cost.
Situations that generally trigger VAT registration
Registration is usually required when the company has one or more of the following in France:
- Stock in France: a logistics warehouse, goods held by a service provider or a marketplace. Moving your own goods from another Member State and selling them locally generally requires registration.
- Local sales to consumers of goods located in France.
- Intra-Community acquisitions made in France for the needs of your business.
- Services taxable in France where the customer does not account for the VAT through the reverse charge, for example some services linked to real estate or the organisation of events.
- Distance sales to French consumers above the EU threshold (EUR 10,000 excluding VAT) where you do not use the OSS one-stop shop.
These situations are not exhaustive: the analysis must cover all of your transaction flows. For distance sales, see also our page on the OSS/IOSS one-stop shop.
Cases where registration is often not needed
When you invoice services to French businesses, the general rule places taxation with the customer, who accounts for the VAT under the reverse charge. Likewise, some supplies of goods to VAT-registered customers identified in France may fall under the reverse charge. Finally, the OSS lets you declare the French VAT due on distance sales from your Member State of establishment, without a local registration.
For expenses incurred in France with no taxable activity, a foreign VAT refund claim may be the relevant route rather than a registration.
Registration or no registration: a quick comparison
| Situation | Usual outcome |
|---|---|
| Stock in a French warehouse | Registration generally required |
| B2B services to a French company | Reverse charge, often no registration |
| Distance sales through OSS | Declared via OSS, no local registration |
| Distance sales outside OSS above EUR 10,000 | Registration generally required |
The watch point: combining several flows
Many foreign companies have a mix of activities. One flow may be covered by the reverse charge while another, such as local B2C sales or a French stock, triggers an obligation. The registration question should therefore be reviewed for the business as a whole and revisited whenever the business model changes.
How the registration works
Once the number is issued, the company files its VAT returns according to the calendar assigned to it: this is the day-to-day reality of VAT returns for an EU company in France.
Anticipate rather than regularise
Registering late means regularising past periods, with possible interest and penalties, and makes recovering VAT paid on purchases more complicated. It is better to start the process before the first transactions.
Is a fiscal representative needed? For a company established in the European Union, this is in principle not the case: it can act directly or through an agent. The fiscal representative is generally required of companies established outside the EU. See our page on fiscal representation for VAT in France.
How Hanoutax can help
Hanoutax, acting as a French VAT agent (mandataire fiscal), first checks whether registration is actually necessary, then prepares and files the application on your behalf under a mandate. For a first review of your flows, use the quick check or contact us.
FAQ
When must an EU company register for VAT in France?
Generally when it holds stock in France, makes local sales to consumers, carries out intra-Community acquisitions, supplies services taxable in France without a reverse charge by the customer, or makes distance sales above the EU threshold outside the OSS.
Does the reverse charge avoid registration?
Often, for services to French businesses, as the customer accounts for the VAT. Some supplies of goods to identified VAT-registered customers can also fall under the reverse charge. Each flow must be checked.
Does the OSS remove the need to register?
For distance sales to consumers, the OSS lets you declare French VAT from your Member State of establishment, without a local registration. It does not cover other flows, such as stock in France, which may require registration.
Is a fiscal representative required for an EU company?
In principle no: a company established in another Member State can register and file directly, or use an agent. A fiscal representative is generally required of companies established outside the EU.
What is the risk of registering late?
Regularisation of past periods, possible interest and penalties, and more complicated recovery of VAT paid on purchases. It is better to start before the first transactions.
Not sure whether you must register for VAT in France?
Related reading
Informational content, not legal advice. The rules that apply depend on your situation.
