Mandate duration: fixed or indefinite term?
The duration of the tax representation mandate is not set by law: it is freely negotiated between the principal and the representative. In practice, the vast majority of mandates are concluded for an indefinite term, with a termination clause subject to a contractual notice period (generally one to three months).
Some professionals also offer fixed-term mandates, adapted to one-off operations: a single real estate sale, an exceptional import, or a temporary mission linked to a specific project in France. Upon expiry of the term, the mandate ends automatically unless expressly renewed.
Continuity of VAT returns
Whatever the duration of the mandate, the filing obligations do not cease. If the mandate ends without the closing VAT returns having been filed, penalties accumulate. Always plan the end of mission with adequate notice.
Different cases of end of mission
A tax representation mandate may end in several circumstances:
- Termination at the principal's initiative: the foreign company wishes to change representative or cease its operations in France. It must observe the contractual notice period and ensure that all pending returns are filed before the effective end date.
- Termination at the representative's initiative: the representative may terminate the mandate if the principal does not pay their fees, provides inaccurate information, or if the relationship of trust is broken. They remain bound by their obligations until the end of the notice period.
- Cessation of activity in France: the company ceases all taxable operations in France. It must close its VAT file and apply for deregistration of its French VAT number.
- Death or dissolution: if the representative is an individual who passes away, or if the representative company is dissolved, the mandate ends and a new representative must be designated urgently.
- Withdrawal of accreditation: if the DGFiP withdraws the representative's accreditation (financial insufficiency, repeated failures), the mandate loses its legal validity and the principal must appoint a new one without delay.
How to change tax representative?
Changing tax representative requires an organised transition to avoid any gap in representation. The recommended procedure is as follows:
- Identify the new representative and sign the mandate with them before notifying termination to the former representative.
- Notify termination to the former representative in compliance with the contractual notice period (by registered letter with acknowledgement of receipt is preferable).
- Inform the DGFiP of the change by letter addressed to the competent SIE, with a copy of the new mandate and the former representative's termination letter.
- Transfer files: the former representative is required to hand over all documents, returns, correspondence, and VAT accounting records to the new representative or directly to the principal.
- Verify return continuity: ensure that no filing period is left without a return being submitted.
Concrete example
A Canadian company dissatisfied with its representative's response times decides to change. In November it contacts a new accredited firm, signs the mandate in December, notifies termination to the former representative on 1 December (2-month notice period), and informs the DGFiP. From 1 February, the new representative is fully operational and files the January VAT return.
Closing obligations
When the mandate ends following a cessation of activity in France (rather than a simple change of representative), specific closing obligations apply:
- Filing the closing VAT return covering the period up to the date of cessation
- Application for refund of any residual VAT credit if applicable
- Deregistration of the French VAT number with the DGFiP
- Retention of VAT archives for 6 years from the closing date
- Repayment or restitution of the bank guarantee to the principal after settlement of all debts
Do not neglect VAT deregistration
An active French VAT number generates filing obligations even in the absence of operations. If you cease your activities in France without applying for deregistration, the DGFiP may require "nil" returns and apply penalties for late filing.
To find a tax representative capable of managing the entire lifecycle of the mandate — from initial designation through to proper closure of the file — consult our list of DGFiP-accredited professionals.
Frequently asked questions
Yes, subject to compliance with the notice period provided for in the contract (generally 1 to 3 months). The representative may also terminate without notice in the event of serious default by the principal (non-payment of fees, established fraud, breach of contract terms). In all cases, they must notify the termination to the DGFiP.
In the event of cessation of taxable activity in France, the company must file a cessation of activity declaration with the DGFiP, file the closing VAT return, and apply for deregistration of its French VAT number. The tax representative accompanies this procedure and their mandate ends once the deregistration is pronounced and any VAT refunds have been obtained.
Yes, this is even common practice. An accredited tax representative generally manages a portfolio of principals. Each mandate is separate and its obligations are independent. There is no maximum number set by law, but the DGFiP ensures that the representative has the organisational capacity to manage all their missions.
Yes, without fail. The end of the mandate — whether resulting from a termination, a change of representative, or a cessation of activity — must be notified in writing to the competent Tax Office (SIE). Without this notification, the authorities may continue to send correspondence to the former representative and consider the mandate as still active.