European businesses that start selling in France quickly find that local rules do not always look like those of their home country. Some mistakes come up again and again in the files we see. They are easy to fix, provided they are spotted early.
Here are the most common ones, grouped into three families: VAT formalities, invoicing and supporting documents, and dealings with the tax authorities. For each, a simple habit helps avoid it.
In VAT formalities
- Registering too late: starting operations before having a French VAT number means regularising entire periods. See VAT registration in France for a foreign company.
- Confusing a stock transfer with a sale: sending goods to France to sell them later creates obligations on arrival. Our article on stock in France covers this point.
- Forgetting a return: a missing return, even with no transactions, may be penalised. See VAT returns.
In invoicing and supporting documents
- Invoicing without checking the customer’s VAT number: the exemption may be refused after the event.
- Losing proof of transport: without it, exempt sales are reclassified.
- Leaving out mandatory mentions on invoices, which weakens the right to deduct. See our invoice compliance review.
These points are handled with simple procedures: checking the VAT number before each new customer, archiving transport documents systematically, and using a validated invoice template.
In dealings with the tax authorities
- Ignoring a letter because it is written in French or looks harmless: response deadlines run from receipt.
- Replying without analysis to a request for information or a proposed reassessment.
- Not realising a permanent establishment exists and letting direct taxes build up. See our article on the permanent establishment in France.
Why these mistakes are so common
Most of them are not careless errors but the result of assuming that French rules mirror those of the home country. Deadlines, mandatory invoice mentions and the way a stock transfer is treated can differ from one Member State to another. Companies also tend to focus on commercial launch first and on tax formalities later, which is precisely when late registrations and missing records appear. Building the tax calendar into the launch plan removes most of the risk.
Summary: mistake, consequence, prevention
| Mistake | Possible consequence | Prevention |
|---|---|---|
| Late registration | Regularisation of entire periods | Register before operations start |
| Missing return | Possible penalty, even with no transactions | Filing calendar |
| Customer VAT number not checked | Exemption refused after the event | Check before invoicing |
| Transport proof lost | Exempt sales reclassified | Systematic archiving |
| Letter ignored | Response deadlines missed | Appointed contact |
How to prevent them
Most of these mistakes are found during a situation review. Having your flows, supporting documents and calendar checked before the first audit costs far less than correcting things afterwards.
A French VAT agent can act as that local contact and track deadlines. Whether you also need a fiscal representative in France, a separate concept, depends on where you are established.
How Hanoutax can help
Hanoutax carries out audits and diagnostics for European companies active in France, and acts as a VAT agent (mandataire fiscal), not as a fiscal representative, for registrations and filings. Start with our quick check.
FAQ
What is the most common mistake foreign companies make in France?
Registering for VAT too late is one of the most common: starting operations before having a French VAT number means regularising entire periods. Registering ahead of time avoids this catch-up work.
Must I file a VAT return if there were no transactions?
In principle, yes: a missing return, even with no transactions, may be penalised. The frequency depends on your regime. A filing calendar helps make sure no deadline is missed.
Why check a customer’s VAT number?
To apply the exemption on an intra-EU sale, the customer’s status as a taxable person is decisive. If the number has not been checked, the exemption may be challenged during an audit.
What should I do when the tax authorities send a letter?
Do not ignore it: response deadlines run from receipt. Have it analysed before replying, especially if it is a request for information or a proposed reassessment. A VAT agent can help you follow it up.
Is a situation review useful before any audit?
Yes. It checks your flows, supporting documents and calendar, and corrects gaps before the tax authorities spot them. It generally costs far less than a correction after the fact.
Have your position checked before an audit
Related reading
Informational content, not legal advice. The rules that apply depend on your situation.
