UK Company Operating in France? VAT Registration, Permanent Establishment and Full Compliance
When a UK company enters France, whether through a construction contract, an installation project, a service agreement, or a sales operation, the compliance obligations go well beyond VAT registration. Depending on the nature and duration of your activities, you may also face a French permanent establishment, French corporate tax at 25%, profit attribution requirements, URSSAF registration for UK employees working on French sites, and French payroll obligations.
Post-Brexit, UK companies no longer benefit from EU freedom of establishment and must assess their French tax and compliance position independently each time they take on French work. A French VAT number does not cover your corporate tax exposure. A short project does not automatically avoid permanent establishment. And a SIRET number is not always the same thing as a French branch registration.
At Lanop, we assess the full picture before advising, and we do not issue a fee quote before we understand your structure.
How Lanop Helps UK Companies Operating in France
- Navigating French tax and compliance is complicated, especially for UK businesses that have never needed to think about French obligations before. We simplify the process by assessing your full exposure first, then managing every filing, registration, and advisory need from a single point of contact.
VAT Registration in France (TVA)
- Lanop handles the entire TVA registration process, including preparing the required documents, liaising with the Direction Generale des Finances Publiques, and securing your French VAT number. We also advise on whether TVA registration is actually required before submitting anything.
Ongoing VAT Compliance and Filing
- We handle monthly or quarterly TVA returns, Intrastat filings, and DEB/DES declarations. Timely, accurate submissions to avoid penalties, interest charges, and missed deadlines.
Permanent Establishment Assessment
- Before advising on structure or registration, we assess whether your activities create a French permanent establishment (etablissement stable). This is the most critical question for UK companies with French contracts, construction projects, or employees on site, and it is entirely separate from VAT.
What Accounting and Compliance Services We Offer
At Lanop, we provide a full range of services for UK businesses operating in France. From initial PE risk assessment through to annual accounts, payroll, and transfer pricing, we manage everything from one engagement.
We assist with registering a French branch or subsidiary, including SIRET number registration, fiscal representation where applicable, and full compliance from day one. We advise on branch versus subsidiary before recommending a route.
Lanop handles TVA registration and ongoing compliance across France and, where needed, multiple EU jurisdictions. We manage cross-border VAT obligations and simplify multi-country filings.
Tailored French bookkeeping prepared under French GAAP, plus payroll support for UK employees on French contracts or posted to French sites. We handle URSSAF registration, payslips, and employer social charge calculations.
We advise on French corporate income tax (IS) at 25%, profit attribution to a French PE, liasse fiscale preparation, and transfer pricing documentation where UK head office costs are recharged to a French entity or PE.
Who We Help Section
Lanop works with UK businesses across a wide range of sectors and structures. Our highest-value work is for companies physically operating in France through contracts, projects, or employees. We also work with e-commerce and marketplace sellers.
- UK construction and engineering companies with French contracts or projects
- Professional services firms with French clients or engagements
- Companies setting up a French branch or subsidiary
- UK companies with employees or subcontractors working in France
- UK-based e-commerce sellers and Amazon FBA businesses
- British Importers and exporters moving goods across France and the EU
Why French Tax Compliance Is More Complex for UK Companies Than It Looks
French VAT registration and permanent establishment are two separate questions
A French TVA number does not mean you have registered a permanent establishment, and having a permanent establishment does not automatically mean you need a French TVA number. These are separate legal and tax concepts governed by different rules. Many UK companies register for TVA and believe they have fulfilled their French obligations. They have not, if their activities also create a corporate tax PE. The consequences of an unregistered PE, including backdated French corporate income tax, penalties of up to 80%, and transfer pricing exposure, are significantly more serious than a late TVA return.
Common Challenges Faced by UK Companies in France
UK businesses expanding into France regularly encounter the same set of problems:
- UK staff arriving on French sites without A1 certificates or posted worker declarations in place
- Filing TVA returns but missing the French corporate income tax requirement entirely
- Processing times of eight to twelve weeks for TVA registration that affect project timelines
- Uncertainty about whether autoliquidation TVA applies to their subcontract invoices
- Not knowing whether their activities create a French PE as well as a TVA obligation
- Being asked by a French client or contractor for a SIRET number they do not have
- Confusion about how to invoice French B2B clients correctly after Brexit
- Language barriers with French-only tax forms and authority correspondence
Lanop addresses all of these. We prepare and submit the correct registrations, advise on the right invoicing treatment, and manage French authority correspondence on your behalf.
Why French Tax Compliance Is Essential for UK Businesses
When your UK-based business begins trading in France, compliance is not just recommended, it is a legal requirement. With the post-Brexit landscape now fully in effect, UK businesses are subject to French tax rules regardless of whether they have a physical presence in the country.
If you are selling goods to French consumers, storing stock in France through Amazon FBA or a local warehouse, carrying out construction or installation work in France, or providing professional services to French clients, you have French obligations. The question is which obligations apply to you, and that depends on your specific activities.
Failing to register for TVA in France can result in penalties, backdated tax, and interest charges. Failing to assess your PE position is a more serious risk still, because it can mean years of undeclared French corporate income tax liability. This is where Lanop comes in. We assess your full picture first and manage every obligation from that point.
Key French Tax and Compliance Terms Explained
French tax and compliance uses terminology that does not always translate directly into UK equivalents. The terms below are the ones UK businesses most commonly encounter when operating in France.
The French equivalent of VAT. The standard rate is 20%. Non-resident UK businesses must register for TVA if they carry out taxable activities in France. TVA is administered separately from corporate income tax.
The French term for a permanent establishment. Under French domestic law and the UK-France double tax treaty, an etablissement stable can arise through a fixed installation, a dependent agent, or a complete commercial cycle in France. If one exists, France can tax the profits attributable to it at 25%.
A 14-digit identification number issued by INSEE to every business entity registered in France, including foreign branches and subsidiaries. A SIRET is required for invoicing in France, employment contracts, and URSSAF registration. It is not the same as a TVA number. UK companies are frequently asked for their SIRET by French clients or contractors.
The French construction sector reverse charge. Under autoliquidation, a TVA-registered French main contractor accounts for the VAT on behalf of a subcontractor on construction or installation works. If autoliquidation applies to your contract, you issue your invoice to the French main contractor without charging TVA, but only if the conditions are met. The wrong treatment creates TVA exposure for both parties.
The annual French corporate tax return. It is a structured package of financial statements and tax schedules submitted to the French tax authorities. Any entity with a French permanent establishment, registered branch, or French subsidiary must file a liasse fiscale each year.
The French social security collection agency. UK companies that employ staff in France, or whose UK employees work in France without the protection of an A1 certificate, must register with URSSAF and pay French employer and employee social charges. Failure to register is an enforceable offence.
A document issued by HMRC confirming that a UK employee temporarily posted to France remains subject to UK social security rather than French social security. It must be obtained before the assignment begins, is typically issued for up to 24 months, and can be extended in limited circumstances. Without an A1, French social security applies from day one.
A mandatory pre-declaration filed with the French labour inspectorate before UK employees begin work in France as posted workers. It must be filed via the SIPSI platform at least one business day before the assignment starts. Failure to file results in fines of up to 4,000 euros per undeclared worker.
The most commonly used French corporate structure for foreign-owned subsidiaries. Flexible, can be formed with a single shareholder, and has fewer administrative requirements than a Societe Anonyme. The French equivalent most commonly compared to a UK private limited company.
The French equivalent of a limited liability company. Popular for smaller operations. Directors (gerants) have specific legal responsibilities under French law, and profit extraction rules differ from those in a UK Ltd.
How Lanop helps
Our French compliance engagements typically cover one or more of the following service areas, depending on your structure and activities:
- PE risk assessment and scoping review
- TVA registration and compliance
- French bookkeeping
- French corporate income tax and liasse fiscale
- French branch or subsidiary annual accounts
- French payroll, URSSAF, and posted workers
- Transfer pricing and profit attribution memo
How Lanop Can Help Your Business Stay Compliant
By choosing Lanop for your VAT registration France, you ensure that all aspects of your VAT obligations are handled by experts. Our team specializes in navigating the intricacies of French VAT laws, offering a full-service solution from registration to ongoing compliance.
We begin by gathering all the necessary documentation and submitting your VAT registration application to the French tax authorities. Once your VAT number France is issued, we ensure timely and accurate VAT filings for your business. We also handle VAT refunds and advise on VAT planning, helping you optimize your tax strategy and reduce costs.
Furthermore, Lanop helps you comply with broader EU VAT registration requirements, particularly if your business operates across multiple EU jurisdictions. We advise on the OSS/IOSS schemes, ensuring you remain compliant and minimize your VAT liabilities across the EU.
With Lanop, you’ll have peace of mind knowing that all your VAT obligations are managed efficiently and without errors, allowing you to focus on expanding your operations in France and beyond.
Questions We Are Most Often Asked
VAT Registration in France
Do I need to register for VAT in France as a UK business?
Yes. If you sell goods to French consumers, store stock in France (like Amazon FBA), or complete taxable transactions there, you must register for French TVA from your first sale. There is no threshold.
What is a permanent establishment and do I have one in France?
A permanent establishment (établissement stable) is a fixed place of business in France. It can arise from a local office, dependent agent, or construction project. If you have one, profits are taxed at 25%.
My construction project in France will last less than twelve months. Does that mean I do not have a French PE?
Not necessarily. While the twelve-month rule is common, a PE can still be triggered by a local site office, equipment base, dependent agents, or if your commercial cycle completes entirely within France.
Do I need a fiscal representative for French VAT registration?
No. Post-Brexit, the UK remains on France’s list of countries exempt from this requirement. You can legally register and manage your TVA compliance directly or choose to use an adviser like Lanop.
What is the French construction reverse charge (autoliquidation de la TVA) and does it apply to me?
It shifts the VAT obligation from subcontractors to VAT-registered main contractors. If you are a UK subcontractor working for a registered French main contractor, you will issue your invoices without French TVA.
What is the difference between a French branch and a French subsidiary?
A branch is an extension of your UK company with shared liabilities. A subsidiary (like an SAS or SARL) is a separate legal entity. This offers better liability protection but requires separate accounting.
How much does French compliance cost for a UK business?
TVA registration and compliance start around €2,000 annually. Full packages including bookkeeping, tax returns (liasse fiscale), and annual accounts for branches or subsidiaries generally range between €6,000 and €12,000 per year.
How long does French VAT registration take?
It usually takes eight to twelve weeks after submitting your application. Missing paperwork causes the most delays. Lanop handles the full process to ensure a smooth, prompt approval for your business.
Can you manage both the UK and French compliance from Lanop?
Yes. Lanop serves as your single point of contact. We manage the UK advisory and collaborate with French specialists for local filings, giving you one clear fee structure and zero hassle.
What is a SIRET number and do I need one as a UK company operating in France?
A SIRET is a 14-digit business ID number used for invoicing, payroll, and URSSAF. Branches and subsidiaries get one automatically. If you only register for TVA, you may need extra registration steps.
Do UK employees working on a French construction site need a posted worker declaration?
Yes. You must file a SIPSI declaration at least one day before work starts, or face fines up to €4,000 per worker. An HMRC A1 certificate is also required to avoid French social security taxes.
What is a liasse fiscale and when does a UK company need to file one?
The liasse fiscale is the annual French corporate tax return pack. Any UK business with a French branch, subsidiary, or permanent establishment must file this within three months of their financial year-end.
How should a UK company invoice a French B2B client, with or without TVA?
Generally, without TVA. The French B2B customer accounts for the tax via the reverse charge. However, if you store goods locally or have a permanent establishment, you may need to charge VAT.
How do I get a VAT number in France?
You must apply to the French tax authority with proof of your business activities, company incorporation documents, and identity verification. Lanop manages this entire process to ensure your setup runs smoothly.
What are the VAT rates in France?
The standard French TVA rate is 20%. Reduced rates include 10% for restaurant services, 5.5% for essentials like food and books, and 2.1% for specific medical products.
Our Identity
Integrity, honesty, and dedication are the core values at Lanop Business & Tax Advisors. Since launching our first Putney office in 2010, we’ve grown into a fully digital, UK‑based accounting and tax advisory firm that blends expert compliance with forward‑looking guidance and business strategy.
Our team of specialized chartered tax advisors and accountants delivers a full spectrum of services including tax planning, bookkeeping, VAT, payroll, and virtual finance director support all designed to help you manage your business more efficiently and confidently.
We believe accounting is more than numbers it’s about empowering your journey through modern finance. That means applying strategic insight, breaking down complex financial processes, and acting as your trusted partner not just submitting filings.
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