An authorised fiscal guarantor

Effective from 1st october 2012, the European Court of Justice cancelled the possibility of fiscal representation by means of a tax respondent (mostly used in France). Currently no alternative is planned to replace this solution. For more information please contact us...

Scheme only available in France.

Why appoint an authorised fiscal guarantor ?

Since September 1st, 2006, in France, the reverse charge mechanism came into force for B2B transactions.

This reverse charge mechanism can be constraining when there is input tax as well as output tax. However, by derogation of this system, an administrative concession allows, under certain circumstances, the seller to invoice with French VAT to avoid having a permanent credit of VAT therefore having to submit VAT refund claims.

The first obligation a company has to fulfill the requirements is to appoint an authorised fiscal guarantor accredited by French authorities.

An authorised fiscal guarantor is liable to local authorities for the companies represented.

Amendment of January, 1st, 2010

The VAT Directive, dated January 2010, removed the derogation of the reverse charge mechanism therefore, from this date on, sellers were not allowed to invoice with VAT anymore. This type of transactions will have to be recorded on a list of taxable supplies of service to avoid any confusions.

To learn more about our authorised fiscal guarantor service, please do not hesitate to contact ASD Group.