What is a tax representative and what is their role?
The tax representative is an individual or legal entity established in France, designated by a non-resident taxpayer to represent them before the French tax authorities. They are the legal point of contact between the foreign company or individual and the French Tax Authority (DGFiP).
Their role covers several missions: filing VAT returns (CA3 forms), paying taxes due, handling correspondence with the tax office, and — in the context of real estate capital gains — calculating, declaring, and paying the tax upon a sale. They are not a tax adviser in the strict sense: they act as a responsible agent, jointly and severally committed to the public treasury.
Who is required to have a tax representative in France?
The obligation to designate a tax representative arises primarily from Article 289 A of the French General Tax Code (CGI). Those concerned include:
- Companies established outside the European Union (and outside the European Economic Area) that carry out VAT-taxable operations in France without being established there.
- Non-residents (individuals or companies) who sell real estate in France when the net capital gain exceeds €150,000, or when the seller is a legal entity.
- Certain importers and customs operators from outside the EU in the context of excise duties.
European companies (EU/EEA) are in principle exempt from the obligation to have a tax representative for VAT purposes since Directive 2006/112/EC. However, they may voluntarily use a tax agent.
How to appoint a tax representative? What are the steps?
The appointment is made with the competent French Tax Office (SIE) — generally the SIE of the Directorate for Non-Residents (DINR) for non-residents. The procedure includes:
- Drafting and signing a tax representation mandate between the foreign company and the representative.
- Submitting the file to the SIE: designation form, copy of the mandate, proof of identity of the representative, company registration extract or foreign equivalent of the represented company.
- Obtaining or confirming the French intra-community VAT number.
The processing time is generally 4 to 8 weeks. It is advisable to begin the process before the start of taxable operations in France to avoid any uncovered period.
How much does a tax representative cost and how are they remunerated?
The remuneration of a tax representative varies depending on the nature of the mission, the volume of operations, and the complexity of the tax situation:
| Type of mission | Indicative range |
|---|---|
| VAT representation (SME, low volume) | €500 to €1,500 / year |
| VAT representation (high volume) | €1,500 to €5,000 / year |
| Real estate capital gain (one-off transaction) | €300 to €800 per sale |
| Bank guarantee (if required) | Variable depending on risk |
These amounts are indicative. To obtain a quote tailored to your situation, it is recommended to contact several accredited representatives and compare their offers. The list of DGFiP-accredited tax representatives available on this site allows you to identify professionals by their speciality and geographic area.