Guide to Registering for VAT in France
Building on over 10 years of experience in French and international laws, Valoris Avocats is an expert in taxation in France and foreign countries. Whether you have started a business in France, are a foreign company or an entrepreneur looking for advice on registering for VAT in France, our lawyers answer your most frequently asked questions on how to register for French VAT, VAT rates, filing and invoicing obligations, etc.
French Tax Lawyers for VAT Registration in France
Valoris Avocats advises companies and auto-entrepreneurs on how to register for VAT tax in France, ensuring compliance with French tax laws. Our team of skilled tax lawyers provides comprehensive services, including guidance on VAT obligations, filing procedures, and compliance with local regulations.
With expertise in French taxation and fluency in multiple languages (English, German, Spanish, Italian, and Mandarin), we are uniquely positioned to assist both French and international clients in navigating the complexities of VAT tax registration in France.
What Is VAT?
Value-Added Tax (VAT) in France is a consumption tax applied to the supply of goods and services. It is collected incrementally at each stage of production and distribution, with the final burden being borne by the end consumer. Businesses charge VAT on their sales (output tax) and reclaim the VAT they paid on purchases (input tax), ensuring that the tax is ultimately paid by the consumer.
VAT Tax Number in France
Although referred to as intra community VAT number, a VAT number in France is a unique identifier used for VAT purposes. It follows the format FR + 2 digits (check number) + 9 digits (SIREN number).
For example, a French VAT number might look like this: FR12 345678901.
SIRET Number: What Is the Difference?
The SIREN number is a unique statistical number obtained when registering a company for legal or tax purposes.
The SIRET number is another unique identifier for businesses in France, used mainly for administrative purposes. It consists of the SIREN number followed by a 5-digit NIC (Numéro Interne de Classement) code.
For example, a SIRET number might look like this: 345678901 00012.
What Is the VAT Rate in 2024?
As of 2024, the standard VAT rate in France is 20%. Reduced rates of 10%, 5.5%, and 2.1% apply to specific supplies of goods and services, such as food, books, and medical supplies. Certain services, like public transportation and cultural events, may also benefit from reduced VAT rates.
Registering for VAT in France: Who is Concerned?
Companies created in France
All businesses established in France must register for VAT if their annual turnover exceeds certain thresholds, depending on the type of business. Below these thresholds, an election for VAT is possible and may be recommended.
Foreign Companies (EU and Non-EU)
Foreign businesses must register for VAT in France if they perform certain types of taxable supplies of goods and services for which they must either pay VAT or report sales such as:
- Sales to private individuals
- Sales to foreign businesses without a VAT number in France
- Cross-borders supplies of goods shipped from France
- Imports in France, etc.
Who is not subjected to VAT?
Certain small businesses and those engaged in exempt activities, such as healthcare and education, may not be required to register for VAT.
When and Where Do I Register for French VAT?
Businesses should apply for a VAT number before beginning to make taxable supplies in France. Registration must be done online via a specific dedicated French administration’s website.
How to Register for VAT in France?
Businesses must file the online application and provide the requested documents to register for VAT in France.
For French businesses, the VAT number is obtained through the legal process of setting up of the company. Once the SIREN is granted, the VAT number is automatically allocated.
EU businesses and non-EU businesses from certain listed countries can carry out the registration formalities themselves or appoint a French tax agent.
Non-EU businesses from other non-listed countries must appoint a tax representative to register and to fulfil their VAT obligations in France.
What Are the Documents Required?
For foreign companies, the following documents are required to register for VAT in France:
- VAT certificate from the home country when available
- Certificate of incorporation in the home country
- Articles of association
- Identification documents of the company’s legal representative
- Detailed description of business activities in France
How Long Does It Take to Obtain a French VAT Number?
For companies established in France: It typically takes about 2 to 4 weeks to obtain a French VAT number.
For foreign companies: It can take 4 to 8 weeks.
French VAT Reimbursement
French VAT registered businesses can reclaim VAT on their purchases through their VAT return. In case of an excess of input VAT, the refund of this credit is not automatic but can be obtained by filing a monthly or quarterly refund claim.
Businesses who are not established in France but incur VAT on purchases in the country may be eligible for a VAT refund. This process involves submitting a VAT refund claim, on an annual or quarterly basis, to the French tax authorities. Eligible entities can reclaim VAT paid on some business-related costs such as, meals, trade shows, etc.
A French tax representative must be appointed for non-EU companies is non-listed countries except if part of listed countries which benefit of an exemption.
What Is the Deadline for Filing the VAT Return?
In France, VAT returns can be filed monthly or quarterly, depending on the business’ turnover and the yearly amount of paid VAT.
The submission deadline depends on the place of establishment for French companies. For foreign businesses, monthly returns must be either on the 19th or the 24th of the following month.
Other VAT obligations may be required in case of EU cross border transactions.
Our Experts on VAT and French Taxation
For more information on our services or to discuss your specific needs, contact us today. Our team of expert lawyers is ready to provide the legal support you need to navigate the complexities of French VAT registration.
