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Representation - Tax mandate

VAT fiscal representation involves entrusting the management of VAT relating to international transactions to a qualified professional, known as a fiscal representative. The tax representative handles all VAT-related administrative and tax formalities on behalf of the client company. The tax representative’s responsibilities include registering with the tax authorities, filing VAT returns and paying amounts due. VAT fiscal representation is compulsory for non-EU companies (with some exceptions), and entails liability subject to guarantee.

For EU companies (and the aforementioned exceptions), a VAT fiscal mandate is sufficient, with no joint and several liability and no guarantee.

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Représentant fiscal
TVA

Determining your VAT registration obligation

Are you carrying out operations in, from or to France? As far as possible, this assessment of your VAT registration obligation should be carried out before you begin your operations. You can do it yourself, or leave it to us. Mastering a few basic principles can help you do this:

  • French VAT registration is not a choice, it serves a declaratory obligation. Thus, no VAT identification for convenience (or to be able to deduct a VAT credit every month rather than quarterly for unregistered companies) can take place.
  • The sale of goods or services in France does not necessarily give rise to a VAT registration obligation, in view of the reverse charge mechanism sometimes applicable.
  • A transfer or allocation of stock, although not a purchase or sale, may give rise to reporting obligations.
  • Any VAT wrongly invoiced is due to the Treasury!
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Representation or Fiscal Mandate?

Once your VAT registration obligation is confirmed, how do you know whether to appoint a representative or a fiscal agent?

You are a company established outside the European Union

As a matter of principle, a non-EU company must appoint a fiscal representative. This must be a natural or legal person accredited by the tax authorities, such as FISCALEAD. In order to obtain this accreditation, the tax representative must demonstrate professional experience, financial solvency and the absence of serious or repeated offences.

The non-EU company will have to set up a guarantee in favor of its tax representative to cover the latter against the risk potentially incurred, for which he or she stands surety before the authorities.

Exception : Companies established in countries that have signed a mutual administrative assistance agreement with France are exempt from having to appoint a tax representative. If you are established in one of these countries, go to the following section

You are a company established in the European Union

An EU company can register for French VAT directly with the tax authorities. It will then need to master the procedures for filing returns online, electronic payment and, above all, all French VAT rules. If, on the other hand, you wish to be assisted in advance, you can appoint a mandataire fiscal. This is the choice made by many European companies.

The EU company has no guarantee to place in favor of its VAT trustee. It remains responsible for its operations before the French tax authorities.

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Taxes

Your operations, their VAT treatment, and your invoices

Whether you’re buying or selling, you’ll need to determine the VAT territorial scope of your operations, in order to determine their VAT treatment. The formalism of your invoices will then be essential to the proper exercise of your VAT rights and obligations. We’ll help you to do this methodically and analytically.

Particularly important in cross-border transactions, the rules for determining the place of taxation are important to master. They differ depending on whether the transaction involves the supply of goods or services. Your FISCALEAD VAT manager will take care of them for you.

Once the place of taxation is in France, the next step is to qualify the transaction from a VAT point of view. Goods or services, quality of the consideration, nature of the economic flow, temporality… there are many factors involved in determining the VAT treatment of a transaction. Your FISCALEAD VAT manager will take care of them for you.

You’re not just responsible for the invoices you issue. You must also take action in the event of non-compliant invoices being received, all in the context of the gradual implementation of electronic invoicing in France. What’s more, you’ll need to maintain a Fichier des Écritures Comptables (FEC) and a Piste d’Audit Fiable (PAF). Your FISCALEAD VAT manager will take care of this for you.

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Onboarding – How we got started

Did you get in touch with us?

01

Discovering your VAT needs and challenges

During a telephone call or appointment, we’ll actively listen to your company’s presentation and your operations. We’ll want to know what you’re doing today and where you’re going in the future. This will enable us to discuss with you all the ways in which you can streamline your VAT processing.

02

Information and documents required – VAT registration process

Once you’ve signed our service contract and power of attorney, we’ll collect your legal documents and any other information we need to qualify future operations. We will then compile your application for French VAT registration and submit it within 2 to 4 days of receiving all the documents. The date of commencement of activities can be adapted (retroactive registration possible).

03

Filing periodic VAT returns and data exchange procedures

As soon as we receive your French VAT number, we start filing your returns. We are also regularly commissioned to carry out regularizations going back several years, and are fully conversant with the delicate exercise of presenting the file.

Deadlines for receipt of your VAT data are set, as are the procedures (on our secure platform or via email).

Get professional help

20% problems or 20% solutions? The stakes are high when it comes to VAT. Given that VAT is a transaction-based tax, the sheer volume of transactions can be a major risk. For example, the penalty for error or omission on an invoice is €15 per error, per invoice. Depending on the volume of transactions, this can quickly be very penalizing. Furthermore, in the event of tax evasion, a surcharge is applicable ranging from 10% to 40% for deliberate failure to comply, and up to 80% in the case of blatant fraud.

By striking a balance between meticulousness, mastery of IT tools and agility, we are able to assist you in VAT matters and provide the added value you’ve been waiting for.

In addition to VAT compliance, our customers entrust us with many other missions, such as, by way of illustration:

  • VAT regularization over 3 years in e-commerce
  • Review of VAT settings in your information systems, to ensure that you never miss a single transaction in your reporting and to better qualify them
  • Incorrectly invoiced VAT: Processed organization of purchase invoice correction requests over 2 years to some fifty suppliers, with follow-up and reminders.
  • Review of VAT operational processes and assistance in documenting proof of exit from the country.

 

You have needs, and we have solutions to help you improve your VAT compliance.

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Let’s discuss your needs

Agile and responsive, we listen to your specific needs. You have consulted a lawyer and want to move on to the operational implementation phase of his or her legal advice? We can help you implement the recommendations of your legal advisers in clear, organised and watertight procedures.

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Fiscalead

Founded by Marcie REYNO-DALLE and Alexandra LOUYOT, FISCALEAD provides operational assistance in indirect taxation: Customs, Excise and VAT. With many years’ experiences in both big 4 law firms and in-house, our team is experienced in a wide range of international business models, industries, and supply chains.

Committed to listening to your operational needs, we put our technical expertise at the service of your logistical, IT and HR realities.

Whether you call on our tax reporting or operational advisory services, our obsession is to ensure that indirect taxation is no longer a barrier for your business but opens up new opportunities for you.

Our added value? In an increasingly globalised and digitalised world, at FISCALEAD expertise is a priority, and technology a necessity – without ever being dissociated. Come and meet us!

Skills

We work with a number of firms that we have partnered with

Knowledge and expertise

We monitor European tax and customs matters for our customers and run technical and practical workshops, webinars and training courses.

Experience

Over 15 years' experience in indirect tax management: Customs, Excise, VAT.

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