Companies based outside of the European Union

French legislation stipulates that foreign companies intending to operate in the French market must nominate and authorize a tax representative.

AFC, tax representative, tax-liable and established in France, agrees to represent the foreign company before the French Tax Administration and, in particular, to fulfil reporting formalities, procure the necessary documents and pay the tax on behalf of the foreign company.
AFC will bear responsibility for reporting intra-community goods exchanges (monthly statistical declaration) for operators exchanging within the European Union, whether for purchases or sales.

Processes for recovering VAT must comply with fiscal legislation in order for the authorities to agree to the repayment of VAT; nevertheless there are procedures, rules, exceptions, special circumstances and supporting documents to produce.

Services provided by AFC are tailored to the specific requirements of their clients.

Below are just examples of standard operations - although other types of intervention also exist:

OPTION 1

Tax representation

Exemple : 1

Field of activity: B2B. Automotive component supplier
Case study: The Tunisian Company imports goods into France. The company receives direct payment from his French customers on the one hand. The company pays its French, EU and Non EU suppliers on the other hand. The goods storage is located in France.
Practicality: Know-how and guidance: AFC & the Tunisian Company have set up procedures in compliance with the French legal obligations (fiscal & customs) and an internal control procedures relating to the preparation and processing of accounting information with the head office in Tunisia. The Tunisian company recovers VAT whenever necessary.
Testimonies:
"We were looking for an Expert in tax consultancy and technical customs expertise"
"AFC supervises and ensure the compliance of all the documents submitted"
"VAT representation in France improves immediate cost savings and ROI"

Example: 2

Field of activity: B2C. Distance selling 'Organic' beauty products
Case study: The Swiss Company imports goods into France. The company receives direct payment from his French and European customers on the one hand. The Swiss company pays its EU and Non EU suppliers on the other hand.
Practicality: Knowledge of the specific local characteristics: - Thanks the VAT representation, the Swiss Company may carry business with French and EU customers without having a permanent establishment in France. AFC supervises the Intrastat thresholds that currently apply in the EU 27 Member states
Testimonies:
"AFC is a firm to human size"
"We absolutely were looking for an accredited fiscal representative"

Example: 3

Field of activity: - B2C. Online sales of consumer goods
Case study: The American Company imports goods into France. The French customers pay on line directly via the American website on the one hand. The Swiss company pays its French suppliers on the other hand.
Practicality: Providing expertise and technical support: - AFC & the American Company have set up procedures in compliance with the French legal obligations (fiscal & customs). The excellent technical cooperation between AFC and the Logistics Company allows the American company to pay close attention to its business activity from France
Testimonies:
"AFC's team provides the best of its expertise in the service of its clients"
"Thanks to VAT representation, we did not need to set up a permanent establishment in France to maintain business activity in France"

OPTION 2

Tax representation

Exemple : 4

Field of activity: B2B. Engineering construction activity
Case study: The Swiss Company carries out sales and provides services in France. The French customers pay on the Swiss Company's dedicated bank account in France on the one hand. The Swiss company pays its French suppliers on the other hand. AFC manages the French dedicated bank account but the Swiss Company remains the sole owner of the bank account
Practicality: AFC has set up a dedicated bank account for the Swiss Company. AFC assists its clients in providing facilities with are optional to Fiscal Representation.
Testimonies:
"Every month, they submit an the Services EC return, recording the movement whenever services are exchanged between France and other Member states"
"Our company is listed on the stock exchange, the internal control procedures validate the flow managed by AFC".

OPTION 3

Tax representation

Exemple : 5

Field of activity: B2B. Industrial components
Case study: The American Company carries out sales and provides services in France. AFC as tax representative will issue invoices for the account of the American company. The French suppliers are paid by AFC Tax representative.
Practicality: AFC has set up a dedicated bank account for the American Company. The customers make online payments via the French website and the platform of a famous French bank.
Testimonies:
"We do not have a permanent establishment in France and therefore we do not pay taxes in France"
"We have few customers in France and VAT representative was the practical solution"

OPTION 4

Tax representation

Exemple : 6

Field of activity: B2B.
Case study: The Australian Company carries out sales of industrial materials in France. AFC as tax representative will issue invoices for the account of the American company. The French suppliers are paid by AFC Tax representative.
Practicality: AFC has set up a dedicated bank account for the Australian Company. The customers make online payments via the French website and the platform of a famous French bank.
Testimonies:
"We do not have a permanent establishment in France and therefore we do not pay taxes in France"
"We have chosen AFC as tax representative because they advise on best practice as regards to the French legal aspects."

Exemple : 7

Field of activity: B2C.
Case study: The Japanese Company carries out sales of consumer goods in France. The French customers pay on line directly on the dedicated French bank account via the Japanese website on the one hand. AFC manages the French dedicated bank account but the Japanese Company remains the sole owner of the bank account. The French suppliers are paid by AFC Tax representative.
Practicality: AFC has set up a dedicated bank account for the Japanese Company. The customers make online payments via the French website and the platform of a famous French bank.
Testimonies:
"The VAT recovery related to the VAT paid to customs beforehand, is all-round benefits for us"
"As a foreign company, we needed an expert as AFC which provides a "one fits all" approach to VAT and customs procedures for our business through France and Europe"

OPTION 5

Tax representation

Exemple : 8

Field of activity: B2B. Agri-food business
Case study: The Senegalese Company carries out sales of consumer goods in France. The French customers pay directly the Senegalese company. The French Logistics Company handling the customs clearance advances the importation VAT for customs clearance. The French suppliers can be paid directly
Practicality: The close guidance between AFC and the Logistics Company allows the Senegalese company to focus on the development of its fresh sea-food business activities in France
Testimonies:
"Since 25 years, AFC has built and reinforcing numerous partnerships with companies providing expertise in logistics, transports activities"
"We maximize and have immediate cost savings at the same time: we recover the VAT for importation VAT paid for clearance. We have no permanent establishment and no employees in France"
"AFC handles our Intrastat returns"

OPTION 6

Tax representation

Exemple : 9

Field of activity: B2B. Sales of consumer goods
Case study: The Argentine company carries out sales of consumer goods in France and in Europe. The French and European customers pay on the Argentinian company's dedicated bank account in France on the one hand. AFC manages the French dedicated bank account but the Argentinian company remains the sole owner of the bank account. The French Logistics Company handling the customs clearance advances the importation VAT for customs clearance. The French suppliers can be paid directly to the dedicated bank account
Practicality: AFC has had a long-term business relationship with the logistics company for several years and it allows the Argentinian company to focus on the development of its perishables business activities in France
Testimonies:
"Our firm is involves in agri-business and AFC brought both know-how and experience necessary on the best practices on perishables"
"We meet our goal on the French market thanks to the skills and capabilities of an expert"

Operators based in the European Union

Operators based in the European Union, including those that are listed on the 2010/24/U.E. directive of 16.03.210, which are subject to French VAT, are no longer required to appoint a tax representative.

These companies may, however, appoint a sole agent for VAT purposes in order to facilitate their dealings with the French authorities.
AFC provides all the necessary warranties to ensure the legitimacy of this service.

The principle of reverse charge

Where goods or services are delivered by a company that is not registered for tax in France, VAT must be paid by the purchaser, recipient or customer where they are identified for VAT purposes in France. 

Tax on insurance contracts

Insurance companies outside of the European Union are required to appoint a tax representative.

Methods used to process taxes linked to insurance policies are similar to those for VAT.

AFC offers a range of other tax consultancy services: VAT on sport or pleasure boating – Security transfer tax – Online gaming taxes – Capital gains tax on property – Excise duties etc.