VAT Registration in France: A Key for Global Expansion

ASC Consuluting
May 27
3 min read

Updated: Jun 24

Client Profile

An Australian entrepreneur is managing sourcing operations through Hong Kong and Mainland China. They are looking to sell directly to the European market. France has been chosen as the starting point for entering the EU due to its logistics convenience and strong market demand.

Overview of the Full Expansion Strategy

This step marks the third phase in a global expansion journey. The full roadmap includes:

Company formation in Hong Kong
WFOE creation in Mainland China
VAT registration in France
Integrated accounting across jurisdictions
Opening a corporate bank account in China
Implementation of Monday.com as a digital backbone
Sourcing optimization and supply chain management

Each phase is meticulously documented. This documentation illustrates ASC Consulting’s comprehensive support across markets and compliance layers.

Context & Objectives

The client needed several things to facilitate their entry into the EU market:

A French VAT number to sell goods directly to EU customers
The ability to act as the importer of record and declare goods at French customs
A structure for storing, distributing, and invoicing from within the EU
Compliance with EU tax legislation, including support for OSS and DDP models
Full visibility over VAT filings and documentation, with remote handling options

Importance of VAT Registration

Obtaining a VAT number is crucial for any business looking to operate within the EU. This ensures compliance with local regulations. It also enhances a company's ability to manage sales and imports efficiently. The process may seem complicated, but the rewards are significant.

Our Intervention – Eurofiscalis APAC for VAT Registration in France

Our approach included the following steps:

Eligibility Analysis: We assessed and confirmed the feasibility of VAT registration in France for a non-EU entity.
Fiscal Representation: A local representative was appointed to meet French legal requirements.
Registration Process: Managed all filings with the French tax authorities, obtaining the VAT number within the expected 4–6 weeks.
Import Framework: Supported the setup of an EORI number, validated the import flow from China, and ensured readiness for the DDP model.
Filing Automation: Connected VAT flows to the client’s accounting system (Xero) and internal project management tool (Monday.com).
Client Enablement: Designed a visual dashboard to help track monthly declarations and invoice reports.

Benefits of Our Services

By providing these services, we enabled the client to focus on their core business. This made their entry into the EU far smoother. The challenges associated with VAT registration, compliance, and reporting were effectively managed.

Results

The client received a fully functional French VAT number. They began importing goods under DDP terms just weeks later. This structure allowed them to hold ownership of goods until the moment of entry into France. Consequently, they were legally recognized as the importer of record.

Now, the client can store and deliver goods locally. This capability makes them much more attractive to European clients, who expect quick and tax-inclusive pricing. The DDP setup also enables better control over total landed costs, improving transparency and profitability.

Monthly VAT declarations are filed with minimal effort. Automated workflows and live dashboards streamline this process. The client is now poised to scale easily into other EU countries and is already planning to activate OSS for cross-border B2C sales.

Long-Term Vision

The successful registration and operational structure provide a sound foundation for further expansion. The client is enthusiastic about exploring opportunities in other European markets. This proactive approach sets them up for sustained growth.

Suggested Next Steps

To build on this initial success, we recommend the following steps:

Expand VAT Registration: Consider extending VAT registration to Germany and Italy.
Activate OSS Scheme: Implement the OSS scheme for efficient pan-European eCommerce operations.
Automate Cost Tracking: Develop systems for tracking costs and VAT forecasting by country.

This strategic approach will enhance the client's capabilities and efficiency in the European market.