When a foreign business carries out taxable activity in France, it may need a third party to handle its VAT formalities. Depending on the case, you will hear of a fiscal representative or a VAT agent (mandataire fiscal). The two notions are close, but whether they are compulsory is not the same.
This article helps you identify your situation, what each role covers and how to choose a provider for a VAT registration in France and the follow-up of your returns.
Company established outside the European Union
A company established outside the EU that carries out transactions in France subject to VAT, or subject to filing obligations, must in principle appoint a fiscal representative established in France. The representative completes the formalities and pays the VAT on its behalf.
Exceptions exist, for example for certain transactions under a suspension regime, or depending on the agreements applicable to the country of establishment. Your situation should therefore be checked before any appointment. Our page on the fiscal representative in France sets out this framework.
Company established in the European Union
A company established in another Member State does not have to appoint a fiscal representative. It registers for VAT directly in France if it carries out taxable transactions there.
It may nonetheless entrust its formalities to a French VAT agent established in France, acting under a mandate. This is a practical choice, not an obligation: the company remains the holder of its VAT number and delegates its formalities and returns.
At a glance
| Criterion | Fiscal representative | VAT agent |
|---|---|---|
| Companies concerned | Established outside the European Union | Established in the European Union |
| Nature | In principle compulsory in the cases concerned | Optional, a choice to delegate |
| Role | Completes formalities and pays VAT on the company’s behalf | Carries out the tasks entrusted under a mandate |
| Basis | Appointment provided for by regulation | Contractual mandate |
What the mandate should cover
Check exactly what the mandate covers. A vague mandate leaves obligations without anyone responsible. The points to clarify are:
- VAT registration;
- periodic VAT returns;
- the recapitulative statement and trade-in-goods declarations;
- correspondence with the tax authorities and follow-up of notices;
- refund claims.
For a delegation to the tax office, see also our page on the power of attorney with the tax authorities.
How to choose
Three criteria guide the choice:
- your country of establishment and the nature of your transactions in France;
- the precise scope of the tasks entrusted;
- the provider’s ability to handle your returns and your dealings with the tax office.
How Hanoutax can help
Hanoutax acts as a French VAT agent (mandataire fiscal) for European companies. If you are established outside the EU, we help you identify your situation and understand the obligations that apply. For European companies, we handle registration, returns and dealings with the authorities under a mandate. A first review is possible through our quick check.
FAQ
What is the difference between a fiscal representative and a VAT agent?
A fiscal representative is, in principle, compulsory for companies established outside the EU that carry out taxable transactions in France. A VAT agent is a practical choice, notably for European companies, that delegate their formalities under a mandate.
Does a European company need a fiscal representative in France?
No. A company established in another Member State does not have to appoint a fiscal representative. It registers for VAT directly in France if it carries out taxable transactions there, and can delegate its formalities to a French VAT agent.
Is a fiscal representative always compulsory outside the EU?
In principle yes for a non-EU company that carries out transactions in France subject to VAT or to filing obligations, but exceptions exist, for example for certain transactions under a suspension regime. An analysis of your case is necessary.
What should a VAT agent mandate cover?
It should spell out the tasks entrusted: registration, VAT returns, recapitulative statement, correspondence with the authorities and refunds. A vague mandate leaves obligations without anyone responsible, which exposes the company to delays and penalties.
What criteria should I use to choose a provider?
Consider your country of establishment, the nature of your transactions in France, the scope of the tasks entrusted and the provider’s ability to handle your returns and dealings with the tax office. Ask for a written scope and clear turnaround times.
Which set-up fits your company? Let’s review it.
Related reading
Informational content, not legal advice. The rules that apply depend on your situation.
