Foreign non-established businesses are required to register for VAT in France as soon as they make a taxable supply. This includes various transactions such as the domestic supply of goods not reverse charged, supply of services not reverse charged, export, import, intra-Community acquisition, intra-Community supply, and distance sales. It is important to note that voluntary registration is not possible for foreign non-established businesses in France, and there is no registration threshold. However, small established companies can take advantage of special VAT regimes that aim to simplify their compliance obligations.
A significant aspect to consider is that a backdated registration is possible, allowing businesses to deduct input VAT incurred before the VAT registration. This can be beneficial for companies that have already incurred VAT expenses but have not yet registered for VAT in France. Additionally, foreign companies have the option of a limited VAT registration in France.
For non-EU businesses, it is mandatory to appoint a French fiscal representative when registering for VAT purposes in France. On the other hand, EU businesses can register directly without the need for a fiscal representative. This difference in requirements highlights the importance of understanding the specific regulations based on the country of origin.
Furthermore, France has implemented a VAT group regime for closely bound taxable persons. This allows eligible businesses to form a VAT group, which essentially treats them as a single taxable person for VAT purposes. This can be advantageous for companies that have close ties or operate as a group within the country.
It is crucial for foreign businesses to be aware of these VAT regulations in France to ensure compliance and avoid any potential penalties or legal issues. Understanding the specific requirements and obligations can help businesses effectively navigate the VAT system in France and maintain a smooth and efficient operation.
In conclusion, foreign non-established businesses must register for VAT in France when they engage in taxable transactions. Voluntary registration is not possible, and there is no registration threshold. However, small established companies can benefit from special VAT regimes. Backdated registration is also an option, allowing for the deduction of input VAT incurred before the registration. Non-EU businesses must appoint a French fiscal representative, while EU businesses can register directly. France also offers a VAT group regime for closely bound taxable persons. It is essential for foreign businesses to understand and comply with these regulations to operate successfully in France.
