Why and when can a foreign company recover French VAT?
When a foreign company purchases goods or services in France for business purposes, it bears French VAT. If that company is VAT-registered in its home country and the expenses relate to a legitimate economic activity, it can in principle recover this tax.
Common refund situations include: purchases of goods in France for resale, trade fair and professional exhibition costs, installation or assembly services, imports of goods with import VAT, and expenses linked to taxable transactions carried out in France.
Two procedures depending on the company's origin
The refund mechanism differs depending on whether the company is established in the EU or outside the EU:
| Situation | Procedure | Tax representative required? |
|---|---|---|
| Company established in the EU/EEA | 8th Directive — Online portal in the country of establishment | No (optional) |
| Non-EU company (USA, China, UK, etc.) | French VAT registration + CA3 return with credit balance | Yes (mandatory) |
| Non-EU company with no taxable transactions in France | 13th Directive procedure (very limited) | Yes (mandatory) |
Non-EU companies cannot use the European refund portal. They must register for French VAT through an accredited tax representative and file regular CA3 returns showing a VAT credit balance. This credit can then be the subject of a refund request.
How to file a French VAT refund claim?
For a non-EU company represented by a tax representative, the process is as follows:
- Step 1 — Compiling the file: gather all French VAT invoices (originals or certified copies), showing the French VAT number, the net amount and the VAT amount separately.
- Step 2 — Checking deductibility conditions: the representative verifies that each expense is deductible (nature of the expense, link to a taxable activity, no legal exclusion).
- Step 3 — Filing the CA3 return showing a credit: the return shows a negative balance (VAT credit).
- Step 4 — Refund request: via form 3519 or directly in the CA3 return, the refund request is submitted to the French Tax Office (SIE).
- Step 5 — Processing by the administration: the French Tax Authority (DGFiP) may request additional documents, particularly for first-time claims or large amounts.
Key points to watch to maximise your refund chances
VAT refund claims are subject to careful scrutiny by the French Tax Authority (DGFiP). Several points can slow down or block a refund:
- Non-compliant invoices (missing supplier VAT number, illegible amounts, VAT not separated from the net amount).
- Expenses excluded from the right of deduction (passenger vehicles, business gifts above €73 including tax per recipient, entertainment expenses in certain cases).
- No demonstrable link between the expense and a taxable transaction in France.
- Late filing: the deadline to claim VAT is 2 years from the year in which the credit arose.
To maximise your chances of recovering French VAT and avoid rejections, work with an accredited DGFiP tax representative experienced in refund procedures.