How can a taxable person not established in France fulfill their VAT obligations?
The ruling BOI-RES-TVA-000211 provides important details on the methods of representation and mandate in VAT matters for companies not established in France that carry out taxable operations in French territory, in particular following the changes that came into force on January 1, 2025.
This formal position taken by the Tax Administration, published in the context of an overhaul of the rules applicable from January 1, 2025, clarifies the reporting obligations of foreign operators, while redefining the mandate mechanisms that can be used depending on the place of establishment of the taxable person.
1. Mandate mechanisms recognized by the administration
1.1. Occasional tax agent (taxable persons established in the EU only)
Companies established in another EU Member State may appoint a temporary tax agent in certain well-defined situations.
The main characteristics are as follows:
- Mandate limited to specific operations
- imports exempt from VAT pursuant to Article 291, III-4° of the CGI, when they are followed by an intra-community supply;
- Exits from customs or tax suspension regimes exempt from VAT pursuant to Article 277 A, II-4 of the French General Tax Code (CGI), when they are followed by:
- of an export,
- of a delivery exempt under Article 262 of the French General Tax Code (CGI),
- or an intra-community delivery.
In this context, the agent carries out the reporting formalities in the name and on behalf of the taxable person, without the latter necessarily being required to have VAT registration in France.
This scheme is inaccessible to companies established outside the EU, including those established in countries that have concluded a mutual assistance agreement with France regarding the recovery of tax debts, and is unsuitable for recurring or complex activities in France.
1.2. Permanent tax agent (EU and third countries)
The permanent tax agent constitutes the standard legal regime for non-established companies carrying out regular taxable activity in France.
It works as follows: The foreign company has a French VAT number. And then the agent:
- files VAT returns,
- makes the payments
- to ensure the operational relationship with the tax authorities,
The declarations are made in the name of the foreign taxpayer.
Key points:
- No transfer of tax liability,
- Written contractual mandate required.
- Solution suitable for continuous flows (local sales, regular imports, stocks in France).
1.3. International tax agent (new for 2025 – imports)
The new international tax agent system (previously called “import tax agent”) was introduced to address operational constraints related to imports.
Its goal is to facilitate VAT formalities when the foreign company does not have direct operational control of the goods upon their entry into France.
Its distinguishing features: The agent is the person who physically holds the goods (logistics provider, warehouse operator, transport operator, etc.),
He completes the declaration formalities related to the import. However, the foreign taxable person retains the status of liable party and the right to deduct import VAT.
This device is particularly relevant for:
- companies outside the EU,
- delegated logistics models,
- complex B2B flows involving warehouses and freight forwarders.
2. General principle: who remains liable for VAT?
The use of an agent does not entail the transfer of the status of being liable for VAT, except in cases expressly provided for by law.
The foreign company remains legally responsible:
- of the filing of declarations,
- of the payment of VAT,
- compliance with accounting and documentary obligations,
even when these obligations are physically fulfilled by a third party.
3. End of temporary tax representation
The ruling reiterates the elimination of the temporary tax representation regime, historically used by companies established outside the EU. This regime has been closed since January 1, 2025. A transitional period is provided until December 31, 2025, for existing situations. After this period, only permanent mandates, generally implemented within the framework of tax representation, or international mandates will be available, depending on the nature of the transactions carried out.
4. Practical issues for foreign companies
For a company not established in France, the choice of the mandate arrangement has direct consequences on:
- the tax and accounting organization,
- the management of deductible VAT,
- securing import/export flows,
- managing tax risk (adjustments, penalties).
The ruling BOI-RES-TVA-000211 provides a consistent and secure interpretation of the available options, but requires a thorough analysis of the flows and the supply chain before any implementation. Eurotax helps you set up the best system adapted to your situation.
5. Reminder of the customs regime 42
Customs regime 42 allows the importation of goods exempt from VAT in France, when these goods are immediately dispatched to another EU Member State as part of an intra-community supply (ICS).
This scheme allows for VAT exemption on imports into France. VAT reporting obligations are therefore deferred to the Member State of destination. It is an alternative to the transit scheme.
The cumulative conditions for benefiting from this scheme are as follows:
The importation of goods from a third country to France, followed without interruption by an intra-community supply to another Member State;
Plus strict adherence to the conditions for exemption from the intra-community supply:
- VAT-registered subjects identified as such,
- Valid VAT numbers, Effective dispatch of goods, Transfer for consideration; Absence of any VAT-taxable transaction in France carried out by the importer;
- The importer designated as the consignee must be the taxable person who carries out the intra-community supply (sale or transfer of goods to oneself).
Eurotax assists you with your VAT-related administrative procedures in Europe. For more information, please contact us here. You can also visit our tax representation and mandate page.
