In France, Article 286 ter of the General Tax Code specifies the activities that require a VAT payer to register for French VAT purposes.
French tax authorities have the right to audit the issuance or maintenance of a VAT number, even if this means invalidating the number. Until December 31, 2022, the Tax Procedures Manual (LPF) listed four cases in which tax authorities could refuse to issue or invalidate a VAT number, but as of January 1, 2023, a fifth case was added: failure to appoint an accredited tax representative. Invalidation of a VAT number can result in the cessation of transactions with a company's contractors. The LPF introduces two new invalidation cases: one for situations where there is evidence of fraud and the other for immediate invalidation when a business obstructs tax audit activities.
The invalidation decision must be substantiated and communicated to the business entity, which can submit comments. Bona fide businesses may be affected by these new regulations. If you require a VAT number in France, as an accredited tax representative in France, we can assist in restoring or assigning a VAT number to the taxpayer.
