VAT is only the most visible part of the French tax landscape. Depending on your activity, your footprint and your products, other indirect and direct taxes may apply. Identifying all of them from the start avoids late corrections and lets you build their cost into your prices.
For a foreign company setting up or selling in France, the right approach is to draw up a complete inventory before the first VAT registration in France, then keep it up to date. Here is how.
Three questions to build the inventory
- What do you sell in France, and to whom? Goods or services, business or consumer customers, regulated markets.
- Where are you present? Stock, office, industrial site, employees, vehicles, owned premises.
- What products do you place on the market? Energy, products covered by the TGAP, beverages, health devices, digital services.
The main families of taxes
The table below lists the main families to review. It is not exhaustive: each situation has to be examined on its own facts.
| Family | Examples | What triggers them |
|---|---|---|
| VAT | Registration, VAT returns, OSS, EC sales lists | Sales and purchases located in France |
| Excise duties | Electricity, gas, energy products | Supply or consumption of energy |
| Environmental taxes | Components of the TGAP | Placing products on the market, installations |
| Sector taxes | Beverages, air transport, digital | Specific activity or product |
| Local direct taxes | CFE, CVAE, IFER, property tax | Establishment or equipment in France |
| Employment and vehicle taxes | Payroll tax, annual vehicle taxes | Employees or vehicles assigned in France |
VAT, the entry point
VAT remains the first topic for most foreign companies: registration, periodic returns, the OSS for distance sales, and the EC sales list for intra-Community supplies. Depending on your situation, these formalities can be carried out by a French VAT agent acting on your behalf.
Once VAT is framed, the other taxes are easier to spot: they often stem from the same facts (physical presence, stock, employees, products).
Common blind spots for foreign companies
Foreign companies most often overlook taxes that are not triggered by sales but by presence: a warehouse, a vehicle registered in France, a local employee or a product placed on the French market. These facts can create obligations that have nothing to do with the VAT return.
Another frequent blind spot is the timing: some taxes are declared annually, others monthly or quarterly, and the first filing date may fall shortly after the triggering event. Mapping deadlines at the same time as the taxes themselves helps you avoid late-filing penalties and unexpected cash outflows.
An inventory to keep up to date
Every new activity, location or product range can bring a new tax into play. The inventory should be reviewed at least once a year, and whenever something significant changes.
What you get at the end of the review
The review produces a map of your taxes in France: for each one, the taxpayer, the base, the filing frequency and the next deadlines.
- the taxpayer: your company, your establishment or a third party;
- the tax base and applicable rate;
- the filing frequency;
- the next deadlines to plan for.
How Hanoutax can help
Hanoutax, a French VAT agent for foreign companies, delivers this map and can then take charge of the related filings under a mandate. See our taxes to declare review service and our fiscal representative France page.
FAQ
Which taxes apply on top of VAT for a foreign company in France?
Depending on the activity, they may include excise duties, environmental taxes, sector taxes, local taxes such as the CFE or property tax, or taxes linked to employees and vehicles. It all depends on what you sell, your presence in France and the products you place on the market.
How do I know whether I owe the CFE or another local tax?
Local direct taxes are generally linked to having an establishment or equipment in France. If you have premises, an industrial site or installations in the country, your position under these taxes should be checked with a professional.
How often should the tax inventory be redone?
At least once a year, and whenever something significant changes: a new activity, a new location, a new product range or a hire in France. Any of these can bring in a tax you did not have to file before.
Can a tax agent file these taxes for me?
Under a mandate, Hanoutax can take charge of the related filings with the authorities. The exact scope depends on the tax concerned and your situation, and it is specified when the engagement starts.
Need to map the taxes that apply to you in France?
Related reading
Informational content, not legal advice. The rules that apply depend on your situation.
