FREQUENTLY ASKED QUESTIONS/Creating a branch without or with establishment in France and the EU/

What is the difference between creating a branch without or with permanent establishment in France and in the EU?

With a French legal entity (permanent establishment), you can sell in all EU and this entity registers and pays VAT for the sales in EU.

As a consequence, this branch is subject to local laws and regulations. Notably, its activities must comply with French laws and the accounts of the parent company must be published within the same delay at the French registry of commerce.

Without a French legal entity, the parent company is only due to register and pay VAT in each country it operates.

This option is available only if you sell products or services in France or in the EU.

For a non-EU parent company, a tax representative must be appointed to register and declare their VAT. The tax representative has more important responsibilities than simply representing the French authorities. Indeed, he is responsible for your declarations and your activities in France.

alf assists you in creating your branch in France be it with or without permanent establishment. To discover our offer, please visit our page on your VAT paperwork.

Read more:

Why resort to a tax agent?

Is French VAT registration necessary?

What is a tax representative?

The reverse charge mechanism