France finalises international VAT-agent guidance

A narrow alternative to fiscal representation

The optional mechanism departs from the permanent fiscal-representation regime in article 289 A. It is available only while the principal is neither established nor VAT-identified in France when the covered transaction occurs. A later French VAT number ends access prospectively, without changing the reporting treatment of qualifying earlier transactions.^[2]

Eligible transactions and exclusions

The principal must carry out only eligible transactions involving the entrusted goods. These comprise imports for which VAT is fully deductible and specified third-territory transactions under Annex III article 95 ter: exports and similar exempt supplies, exits from suspensive regimes immediately followed by such supplies, and certain import-equivalent regime exits after supplies while the goods were suspended. Intra-EU acquisitions, intra-EU supplies and article 262 services are excluded. An out-of-scope taxable transaction requires the operator to move to the ordinary identification and representation rules.^[2]

The guidance confirms that the regime can cover imports followed by French supplies or services for which an identified business customer accounts for VAT under article 283. Its examples include French storage followed by a domestic sale, a locally leased vehicle and goods sold with installation. By contrast, procedure 42 imports followed by an intra-EU supply are outside the regime.^[2]

Who can act and how

An agent must have been established and VAT-identified in France, and filing its own VAT returns, for at least one year. It must satisfy the prescribed tax-compliance and commercial-sanction tests and have physical control of the goods under one of the listed contracts, such as consignment, processing, assembly, rental, storage or transit. The written mandate must exist before the transactions and identify its period, the way the goods are entrusted and the categories of transaction covered.^[2]

Separate reporting and liability

The agent ordinarily receives a specific VAT number and files a separate electronic return covering the eligible operations of its principals. A transitional concession permits an eligible person to operate without that specific number until 31 December 2026. The agent is jointly liable for tax, interest and penalties where exemption, payment-waiver or suspension conditions fail. VAT on the principal’s other French purchases cannot be put on the agent’s return; the principal must use the applicable refund procedure instead. Groups should therefore map each goods flow and counterparty before deciding that the mandate removes a French registration requirement.^[2]