Non-EU businesses must appoint a VAT representative. The representative must be a taxable person established and liable to VAT in France and known as a “good”
taxpayer. The representative should provide his proxy and should be accredited by the FTA. The FTA have provided a draft proxy in their
guidelines: http://bofip.impots.gouv.fr/bofip/1421-PGP.html Application forms
The application is made on Form 3559-SD issued by the French tax authorities. The form must be completed in French, in block capitals and in Euro. The form can be downloaded via the following
link: http://www.impots.gouv.fr/portal/deploiement/p1/fichedescriptiveformulaire_843/fic hedescriptiveformulaire_843.pdf
All invoices must be listed in attachment to the application form. An excel spreadsheet can be used to provide an overview of the claimed amounts, as well as information reported on the attachments.
The application must be signed by a person who is legally entitled to bind the company (e.g. managing director or a person duly empowered). In this last case, a power of attorney should be provided.
If the application relates to a period of less than one calendar year but not less than three months, the amount for which application is made may not be less than EUR 400; if the application relates to a period of a calendar year or the remainder of a calendar year, the amount may not be less than EUR 50.
The form and supporting documentation must be sent to:
Direction des résidents à l’étranger et des services généraux (DRESG) Service des Remboursements de TVA des assujettis étrangers
10, rue du Centre - TSA 60015 93465 Noisy-le-Grand cedex France
Phone: (0033) 01 57 33 84 00 Website: http://www.impots.gouv.fr
E-mail: [email protected] Applications cannot be filed electronically.
Proxy
When a foreign company decides to appoint an agent, a proxy in French should be prepared, signed by both parties and sent by mail to the FTA (non-residents taxcenter). The FTA have provided a draft proxy in their
guidelines: http://bofip.impots.gouv.fr/bofip/1421-PGP.html
Supporting documentation
A non-EU business applying for a VAT refund claim in France does not have to enclose a certificate of VAT taxable status with the VAT refund claim. Original hard copy invoices must be provided. Invoices are sent back to the taxpayer.
E-invoicing
Invoices may be issued electronically in France, but stringent rules apply and practical difficulties arise in the context of the VAT refund claim procedure because original hard copies of invoices must be provided to the French tax authorities.
Refunds and appeals
The French tax authorities should issue their decision concerning the refund claim within six months following the receipt of the claim.
Queries could be sent for further information to the VAT representative or to the claimant (if necessary). Final decision should in any case be sent to the VAT representative.
If the FTA requests additional information, the period of 6 months could be extended for maximum 3 months.
If no decision is made by the authorities within the above mentioned deadline, the claim is deemed to be rejected.
Refund should be paid within 6 months after the day the claim is considered as complete by the FTA.
Late payment interest is due when the refund is not granted within the six months following the date where the claim is deemed to be complete by the FTA.
In case one invoice is not correct or is not provided in an original copy, only this invoice should be rejected. The whole claim should not be rejected. However, the factual background should be taken into account.
A query on a particular submitted invoice which has not been answered may lead to a rejection of the whole VAT refund claim if the authorities consider that they have doubts the conditions to claim the refund are not met. For example, when checking an invoice, they may have doubts on the existence of a PE/the need to register. If they ask additional information on this invoice and if no answer is provided, they may reject the whole claim. Generally, the FTA provide a deadline and indicate that the claim will be rejected if no answer is provided in due time.
If the refund is not granted, the grounds for rejection of the application will be stated. Some practical causes of rejection usually used by the French authorities are for example the existence of a PE, the necessity to be VAT registered, a VAT taxable income, no answer to the queries in due time, etc.
If the refund is not granted, the grounds for refusal of application will be stated. An appeal against a denied claim can be made to the French Administrative Court (“Tribunal administratif de Montreuil”) before the end of the fourth month following the notification of the decision. The claimant can also request mediation, but this will not affect the appeal’s deadline.
If the FTA perform an audit after having granted the VAT refund to the taxpayer, they need to issue a specific reassessment proposal (according to the domestic tax procedure). No late interest can be applied. A fine (article 1729 of the French Tax Code) could be applied in case of wilful default (40%) or fraud (80%).
The FTA often ask for extra information for a first VAT refund claim and the refund is granted after 9 months. The first claim is generally carefully examined and for the following claims, the procedure usually is quicker.