How to get French VAT recovery ?
In France, like in most countries, Value Added Tax (VAT) should not be a final cost for your company. However, the procedure for foreign businesses to reclaim it differs significantly from domestic ones, particularly when navigating cross-border VAT issues and international VAT compliance requirements.
If your company is VAT registered in France, you can directly request a refund on your periodic French VAT return, following standard VAT compliance regulations.
For businesses not registered in France, the VAT reclaim process depends on your location and the applicable tax reciprocity agreement:
- EU-based companies can apply for an EU VAT refund through their own country’s tax portal, following the 8th Directive VAT reclaim procedure.
- Non-EU based companies must use the 13th Directive VAT process, which legally requires them to appoint a tax representative in France and navigate non-EU VAT recovery requirements.
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- Reading time : 13 minutes
- Updated : 28/07/2025
Here are the 4 essential things foreign companies must know about French VAT recovery:
Your Refund Process Depends on Your Location: The method you use is determined by where your company is based. EU businesses use a streamlined digital portal in their home country (8th Directive), while non-EU businesses must navigate a more formal procedure (13th Directive).
A Fiscal Representative is Mandatory for Non-EU Businesses: If your company is based outside the European Union, you are legally required to appoint a French fiscal representative. This entity is jointly liable for your claim and is your sole intermediary with the French tax authorities.
Not All Expenses Are Refundable: While VAT on most business-to-business expenses like trade fair costs or professional services is recoverable, be aware of key exceptions. For instance, VAT on hotel and accommodation expenses for your own employees or directors is strictly non-deductible.
- Pay Close Attention to Deadlines as They Differ: The final date to submit your claim is non-negotiable and varies by your company’s location. For EU-based companies (using the 8th Directive), the deadline is September 30th. For non-EU companies (using the 13th Directive), you must submit your claim much earlier, by June 30th of the year following the expense.
Who is Eligible for French VAT Recovery?
VAT refund eligibility for a French VAT refund primarily depends on your company’s registration status and its activities in France. Understanding the VAT exemption criteria is crucial for determining your eligibility. There are three distinct categories of businesses that can reclaim VAT:
- Foreign companies with a French VAT number: If your business is registered for VAT in France (for example, because you store goods locally, engage in VAT on e-commerce in France, or exceed certain sales thresholds), you operate like a French company for tax purposes. You must file periodic French VAT returns, and you will recover your input VAT directly through these declarations following standard VAT compliance regulations.
- Foreign companies without a French VAT number: This is the most common situation for businesses claiming a refund on expenses like trade shows or professional services. To be eligible for non-resident VAT claims, your company must meet two key conditions:
- It must be registered as a taxable person (i.e., subject to VAT or an equivalent tax) in its country of establishment.
- It must not have conducted any transactions during the claim period that would have legally required it to obtain a French VAT registration.
- French-based companies: Any business established and registered for VAT in France can, of course, deduct input VAT on its standard domestic returns, benefiting from the current VAT rates in France.
Every invoice with VAT is money you’re owed. Let Eurofiscalis handle the complex administrative process of your 8th or 13th Directive claim and get your refund.
What Expenses Are Eligible for VAT Recovery in France?
Knowing which costs qualify is critical for a successful French VAT recovery claim. While many business expenses VAT are eligible, France has specific rules and important exceptions that affect business expenses eligible for VAT refund.
Here is a summary of the most common expense categories:
| Expense Category | VAT Deductibility | Key Conditions & Nuances |
|---|---|---|
| Conferences & Seminars | Deductible | Applies to admission fees for trade fairs, conferences, and professional events. Perfect for VAT refund for events situations. |
| Exhibition Stand Rental | Deductible | Includes costs for renting space and essential equipment for trade shows, commonly claimed in VAT refund for events. |
| Goods Transport | Deductible | Covers VAT on freight, shipping, and logistics services used for your business, especially relevant for cross-border VAT issues. |
| Car Rental | Deductible | VAT on short-term vehicle rentals for business purposes is generally recoverable as part of eligible business expenses VAT. |
| Fuel (Diesel & Petrol) | Partially Deductible | The rules are very specific. For passenger cars, VAT on both diesel and petrol (essence) is typically 80% deductible. For commercial vehicles, it's 100%. This varies based on current VAT rates in France. |
| Restaurant & Catering | Deductible | Contrary to a common misconception, VAT on restaurant expenses is recoverable as business expenses eligible for VAT refund. The meal must be for clear business purposes, and you must have a compliant invoice listing the VAT. |
| Hotel & Accommodation | Generally Not Deductible | This is a critical point for VAT refund for accommodation expenses. VAT on accommodation for your company's employees or directors is not recoverable. However, it becomes deductible if the cost is incurred for a third party (e.g., a client or supplier) and paid by your company. |
| Note | Unlike VAT refund for tourists or retail purchase VAT refund schemes, business VAT recovery focuses on professional expenses and follows different procedures entirely. |
What Documents Do You Need for a VAT Refund Application?
To ensure your VAT refund application is processed smoothly by the French VAT administration, you must provide a precise set of supporting documents for VAT refund and information. The French tax authorities require a complete and well-organized file that meets strict VAT invoice requirements.
Here are the essential elements you must prepare:
- Your full company identification: This includes your official company name, registered address, and your intra-community VAT number from your country of establishment.
- Your bank account details: You must provide your full IBAN and SWIFT/BIC code to allow the French tax authorities to transfer the refund.
- A detailed summary of each invoice: For every expense claimed, you must list the supplier’s name, the invoice number, the taxable amount (net value), the VAT amount, and a standardized code describing the nature of the expense, ensuring compliance with VAT invoice requirements.
What Are the Deadlines and Minimum Claim Amounts for VAT Reimbursement?
Meeting the strict VAT refund deadlines and VAT refund thresholds is non-negotiable for a successful French VAT recovery. The rules vary depending on your company’s VAT registration status in France, and understanding these VAT refund timeframes is crucial for timely submission.
VAT refund deadlines
- For companies with a French VAT number: The claim is made directly on your periodic VAT return (usually monthly or quarterly). There is no separate annual deadline, as the refund request is part of your regular compliance cycle with the French VAT administration.
- For EU-based companies (8th Directive): The VAT refund deadlines require you to submit your refund claim by September 30th of the year following the calendar year in which the expense was incurred. For example, for invoices dated in 2024, the claim must be filed by September 30, 2025. This deadline applies to all EU VAT refund applications.
- For non-EU based companies (13th Directive): The deadline for non-EU VAT recovery is also September 30th of the year following the calendar year of the expense, but the process involves additional complexity due to reciprocity in VAT refunds requirements.
My Tip: Do not wait until the last minute. Submitting your claim early allows more time for the French tax authorities to process it and request any additional information without jeopardizing your refund. The VAT refund processing time can vary significantly based on the completeness of your application.
The Minimum Amounts
Understanding VAT refund thresholds is essential for determining when you can submit your claim:
- For EU and non-EU companies without a French VAT number:
- €400 (or the equivalent in your national currency) for a claim covering a period of three months to less than a full calendar year.
- €50 (or the equivalent) if the claim covers an entire calendar year.
- For companies with a French VAT number: There is no minimum claim amount when requesting a VAT credit refund on a standard French VAT return. However, a refund is typically only requested when the credit is significant (e.g., over €760 for monthly filers).
What Is the Step-by-Step Process to Recover VAT in France?
The exact VAT reclaim process depends entirely on your company’s status. Below are the three distinct procedures for recovering French VAT, each with specific VAT refund conditions and requirements.
For EU-Based Companies: The 8th Directive Refund Process
This fully digital process through online VAT refund applications is designed for companies established in another EU member state that are not registered for VAT in France.
- Step 1: Log in to your home country’s tax portal You do not file the claim directly in France. Instead, you use the electronic VAT refund portal of your own national tax administration. Your authority conducts an initial check of your taxable status before electronically forwarding the claim to the French VAT administration (DGFiP).
- Step 2: Complete the standardized information Although you are on your national portal, the required information is standardized across the EU for EU VAT refund applications:
- Your full company identification details.
- Your IBAN and SWIFT/BIC for the refund transfer.
- Details for each invoice: supplier, invoice number, taxable amount, VAT amount, and a coded description of the expense.
- Step 3: Attach scanned invoices You are not required to attach every single invoice as supporting documents for VAT refund. However, providing a digital copy of the receipt becomes mandatory if its taxable base exceeds certain thresholds (typically €1,000 for general expenses and €250 for fuel).
For Non-EU Based Companies: The 13th Directive Refund Process
For a non-EU business, the procedure for non-EU VAT recovery is more formal, complex, and costly, governed by the 13th VAT Directive and subject to reciprocity in VAT refunds agreements.
- Step 1: Appoint a French fiscal representative (Mandatory) This is the most critical and unavoidable legal requirement for tax reclaim for foreign companies. Your appointed French fiscal representative is not just an administrative assistant; they are your sole intermediary with the French tax authorities (DGFiP). Crucially, they are jointly and severally liable with you for any refund that is later deemed incorrect. This shared liability is why they will meticulously review your file before submission, ensuring full international VAT compliance.
- Step 2: Gather specific additional documents Beyond the invoices, the required supporting documents for VAT refund are more extensive. You must provide:
- A Power of Attorney (mandate) for your representative.
- An official certificate of your fiscal status from your home country’s tax authority, proving you are a taxpayer subject to a VAT-like tax during the relevant period, demonstrating reciprocity in VAT refunds.
- Step 3: Your representative submits the electronic claim in France The claim is filed directly by your French fiscal representative through the French VAT administration’s electronic portal. Only they have the credentials to submit on your behalf. The application is only considered validly submitted once all supporting documents for VAT refund have been provided.
For Companies Registered for VAT in France: Refund via the French VAT Return
If you have a French VAT number, the recovery process is integrated into your regular tax reclaim for foreign companies filings with the French VAT administration.
- If your input VAT exceeds your output VAT, you will have a VAT credit. This amount appears on line 25 of the French VAT return (Form CA3).
- To request the cash refund, you must:
- Meet the refund threshold: For monthly filers, the minimum VAT credit that can be claimed for a refund is €760, aligning with VAT refund thresholds.
- Complete line 26 of the CA3 form to officially request the payment of the credit from the French VAT administration.
What Are the Common Reasons for VAT Recovery Claims to Be Denied?
Even a carefully prepared claim can face rejection from the French tax authorities. Understanding the common pitfalls is the best way to ensure your French VAT recovery is successful. Denials from the meticulous French VAT administration often stem from one of these three key issues:
- Claiming for Non-Eligible Expenses Including costs that are explicitly excluded by French law is a guaranteed way to have your claim partially denied. A classic example is trying to recover VAT refund for accommodation expenses for your company’s own employees or directors, which is strictly non-deductible under current VAT exemption criteria. Always verify that each expense category qualifies as business expenses eligible for VAT refund before adding it to your claim.
- Having a VAT Registration Obligation This is a critical point for international VAT compliance. The French tax authorities may review your activities and determine that your business operations (e.g., storing goods in France, specific VAT on e-commerce in France sales) legally required you to have a French VAT registration during the claim period. If this is the case, the 8th or 13th Directive refund procedures are considered invalid. The correct method would have been to register for VAT and reclaim it via a standard French VAT return.
- Submitting Non-Compliant Invoices This is the most frequent cause of rejection for individual expenses. The responsibility for ensuring every invoice meets VAT invoice requirements rests with you, not your supplier. An incomplete or incorrect invoice will be rejected by the French VAT administration.
My Tip: Treat this as a pre-submission checklist for your supporting documents for VAT refund. Before including any invoice in your claim, verify it contains all of the following required by VAT invoice requirements:
- Supplier’s full name, address, and French VAT number.
- Your company’s full name, address, and local VAT number.
- A unique invoice number.
- The date of issue.
- A clear description of the goods or services supplied.
- The taxable amount (net) and the VAT amount clearly stated in Euros (€), reflecting current VAT rates in France.
Every invoice with VAT is money you’re owed. Let Eurofiscalis handle the complex administrative process of your 8th or 13th Directive claim and get your refund.
Business développeur chez Eurofiscalis, j’ai pour objectif de simplifier et vulgariser les règles de TVA pour les e-commerçants et les sociétés s’exportant à l’international. Je sais combien cela peut être complexe et fastidieux, et je suis convaincu que mon expérience et mes connaissances peuvent aider les entreprises à comprendre et à respecter les réglementations fiscales en vigueur.
