French General Tax Code
In forceI. - When a person not established in the European Union is liable for value added tax or is required to fulfil reporting obligations, it is required to have a taxable representative established in France accredited with the tax department, who undertakes to complete the formalities incumbent on this person and, in the case of taxable transactions, to pay the tax on its behalf. Failing this, the value added tax and, where applicable, the related penalties, are payable by the recipient of the taxable transaction.
The first paragraph shall not apply:
1° To persons established in a State which is not a member of the European Union with which France has a legal instrument relating to mutual assistance similar in scope to that provided for by Council Directive 2010/24/EU of 16 March 2010 on mutual assistance for the recovery of claims relating to taxes, duties and other measures and by Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax. The list of these States is set by order of the Minister responsible for the budget;
2° Persons not established in the European Union who only carry out transactions mentioned in I of Article 277 A in suspension of payment of value added tax or supplies of natural gas, electricity, heat or refrigeration for which tax is due in France by the purchaser pursuant to 2 quinquies of Article 283.
II. - For the application of 2 of article 283 and in the absence of payment of the tax by the customer, the service provider not established in the European Union is required to appoint a taxable representative established in France, accredited with the tax department, who completes the formalities relating to the transaction in question and pays the tax.
III. - By way of derogation from the first paragraph of I, persons not established in the European Union who exclusively carry out transactions for which they are exempt from payment of the tax pursuant to 4 of II of Article 277 A or transactions exempt pursuant to 4° of III of article 291 may instruct a taxable person established in France, accredited by the tax department, to carry out the reporting obligations relating to the transaction in question.
This taxable person is liable for the tax relating to the transaction for which he must carry out the reporting obligations, as well as the penalties relating thereto, where the conditions to which the exemption from payment or the exemption are subject are not met.
A decree defines the conditions under which the reporting obligations provided for in article 287 are simplified for these transactions.
IV.-A.-For the purposes of I to III of this article, only the person who meets the following conditions may be accredited:
1° Neither it nor any of its directors, in the case of a legal entity, has committed serious or repeated breaches of tax provisions, has been subject to the sanctions provided for in Articles L. 651-2, L. 653-2 and L. 653-8 of the French Commercial Code during the previous three years, or is subject to a prohibition measure currently in force provided for in the same Article L. 653-8;
2° It has an administrative structure and the human and material resources to enable it to carry out its representation mission;
>It is solvent and has a good reputation. 3° It is financially solvent in relation to its obligations as a representative or has a financial guarantee for one quarter of the sums arising from these obligations, resulting from a guarantee undertaking given by a mutual guarantee company, a collective guarantee organisation, an insurance company, a bank or a financial institution authorised to give guarantees. However, when these sums cannot be determined for a represented person, it has, for the obligations associated with this person, a financial guarantee equal to a level set by order of the Minister responsible for the budget.
B.-The tax department withdraws the guarantee from the tax office. B.-The tax department will withdraw the representative's accreditation if the representative ceases to meet the conditions set out in A of this IV or if he fails to comply with his obligations to declare and pay taxes on behalf of the persons he represents or on his own behalf.
C.-The procedures for issuing accreditation are set out in this IV. C.-The procedures for issuing and withdrawing accreditation are determined by decree in the Council of State.
