Tax representation is vital for foreign companies carrying out operations subject to French value-added tax.
Is your company looking for an accredited tax representative to handle its accounting declarations?
Find out how Fiscalead, an accredited tax representative, can help companies with all their accounting and tax operations!
Choosing your tax representative
Is your company based outside the European Union and subject to VAT in France? Do you have to fulfil reporting obligations in France, even if your company is located in a foreign country?
To comply with French tax regulations, you need an accredited tax representative.
The role of the tax agent is simple: he acts on behalf of the foreign company, taking care of its tax and accounting obligations.
In order to carry out his mission, the tax representative intervenes in particular:
- For the declaration and payment of value-added tax (VAT)
- For tax returns
- As an intermediary with local tax authorities
Ultimately, the tax representative is the guarantor of your company's tax risk in France.
The obligations of a tax representative
The tax representative signs a mandate with your company to carry out his or her duties. Once the fiscal representative's appointment has been formalized for your company, he or she is considered to be responsible for VAT-related accounting and tax obligations for all operations carried out in France.
The tax representative must therefore meet certain obligations to ensure that the service provided to companies is compliant:
- Act as the foreign company's agent to issue its invoices;
- Keep the accounts of all operations carried out by the foreign company in France;
- Make sales declarations and pay VAT.
Please note that if the tax representative does not comply with his obligations when carrying out transactions for companies located in a country outside the European Union, but which are subject to value-added tax in France, he may lose his authorization.
In such a situation, the risk is considerable for the foreign company, as its accounting and tax operations may be blocked until the appointment of a new accredited representative is effective. For example, if VAT has not been paid by the tax representative, it is the recipient of the taxable transaction (i.e. the customer) who has to pay it, with late payment penalties. Hence the importance of choosing a trusted tax representative!
What about VAT?
If your company is not based in the European Union, but in another foreign country, you can claim a VAT refund through your accredited tax representative. For companies based outside Europe, this representative is responsible for submitting the refund application to the tax authorities.
Why call on Fiscalead?
As a company based abroad, are you unsure whether you need to be accompanied by a tax representative for accounting and tax reporting formalities? It is essential to opt for the appointment of a representative if you meet the following criteria:
- Your company is not based in the European Union;
- Your company is subject to VAT in France, and is likely to have to fulfil certain reporting obligations.
Good to know: some companies are exempt from appointing a tax representative, so it's important to seek expert advice to ensure that you comply with the tax obligations in force in the French state.
Fiscalead is a firm specializing in operational assistance in indirect taxation: thanks to our 15 years of experience, your company is guaranteed to benefit from optimal tax management. Whatever the tax operation you need to carry out, we can help you with all your tax formalities in France and Europe.
Find out more about Fiscalead, your tax representative!
Do you have a question about our mission as a tax representative, our expertise and our services?