Do All Non-EU Cross-Border E-Commerce Need To Appoint A VAT Tax Representative In France?

Foreign companies registered at other European Union member states, or the countries or territory where the foreign companies located have entered into an agreement with France to assist in the collection of tax debts, which have no obligation to appoint their tax representative in France. In addition to the 28 EU member states, there are currently 25 countries which have entered into bilateral tax agreements with France, with the exception of China (Hongkong and Taiwan).

According to the article 289A of the French General Tax Code l’article 289 A du Code Général des Impôts, the non-EU companies which not included in the above list should appoint a French tax representative to declare and pay tax for them. Therefore, cross-border sellers registered in China need to appointing a tax representative in France.

In the absence of a legally appointed tax representative, VAT and penalties payable by cross-border sellers will in principle be paid by the recipient of the taxable transaction. In practice, it can be paid by the French goods receivers and the cross-border sellers ‘buyers in France. At that time, your French customer may file a written claim through the sale platform, or directly to you, for reimbursement of their taxes already paid.

The 25 countries which have entered into bilateral tax agreements with France do not need to appoint a tax representative in France, they can declare tax and custom directly from their countries od residence. However, in view of the complexity of VAT legislation and simplification of work with the French government agencies and according to the French General Tax Code (Code Général des Impôts, ann. III, art. 95, III°), these companies can still appoint a tax representative (Mandataire fiscal) to declare and pay tax in France. To do so, the commissioning company must submit to the French tax authorities the authorization documents signed with French tax representatives. These 25 countries include :