Who is affected on the US side?
As the United States is not a member of the European Union, individuals and legal entities of US nationality or residence are subject to the same rules as all non-EU entities: the obligation to appoint an accredited fiscal representative in France whenever they have taxable transactions on French territory.
Specifically, those affected include: US residents who own property in France (particularly on a sale), LLCs, Inc., C-Corps and S-Corps carrying out sales of goods or services subject to French VAT, and French expatriates living in the United States who retain real estate assets in France.
VAT obligations for US businesses
A US company that sells goods stored in France, imports and distributes merchandise on French territory, or provides digital services to French consumers, is subject to French VAT. It must:
- Register with the Service des Impôts des Entreprises Étrangères (SIEE) in Paris
- Appoint a fiscal representative accredited by the French Tax Authority (DGFiP)
- File periodic VAT returns (monthly or quarterly CA3)
- Allow its representative to arrange, if required, a bank guarantee
US companies using Amazon FBA (Fulfillment by Amazon) with stock in French warehouses are particularly affected. Storing goods in France immediately creates a local VAT obligation, regardless of the turnover generated.
Real estate obligations for US residents
A US resident (or a French expatriate living in the United States) who sells property in France is subject to French non-resident capital gains tax. The rate is 19% for EEA nationals and 26.5% for other non-residents, to which 17.2% social levies are added (subject to exemptions).
If the capital gain exceeds €150,000, the appointment of an accredited fiscal representative is mandatory. The notary will not be able to release the sale proceeds without a certificate from the representative confirming that the tax obligations have been met. Below this threshold, the notary withholds the tax directly at source.
The France-USA tax treaty: what it changes
France and the United States are bound by a bilateral tax treaty signed in 1994 and subsequently revised. This treaty aims to avoid double taxation and prevent tax evasion. It sets out rules for allocating taxing rights over real estate income, capital gains and business income.
In practice, the treaty does not remove the obligation to appoint a tax representative in France. However, it may reduce the amount of tax due in France by granting a tax credit in the United States for taxes paid in France. It is important to distinguish:
- The fiscal representation obligation: maintained, governed by French domestic law
- The elimination of double taxation: addressed by the treaty, allowing French tax to be offset against US tax
Appointing your tax representative: the steps
The procedure for a US resident or business is the same as for any other non-EU non-resident. It involves four main steps:
- Choose an accredited representative: the representative must be approved by the French Tax Authority (DGFiP). Verify their accreditation before signing.
- Sign the representation mandate: a contractual document specifying the scope of the engagement, its duration and the fees.
- Submit the registration file: the representative submits the application to the SIEE with the company's articles of association (or the title deed for real estate), translated if necessary.
- Obtain the VAT number: within 4 to 8 weeks on average. This number must appear on all invoices issued in France.
To find a professional suited to your US situation (English-speaking, familiar with Franco-American tax law), consult the list of accredited fiscal representatives.