OVERSEAS CONSTRUCTION COMPANIES
Since 1 January 2010, services connected with immovable property located in France are subject to French VAT including when the company performing these operations is located abroad.
Foreign Architectural Firms and French VAT
A foreign architectural firm which draws up plans for a building or parts of a building designated to be erected on a particular plot of land in France, is expected to include French VAT on its service invoice.
However, there is an exception to this rule when the customer (i.e. the Project Owner, the Delegated Project Owner or the Main Project Supervisor) has a VAT identification number in France. In this specific case, no French VAT should be charged.
The VAT rule above mentioned will be applied regardless of whether or not the building is actually erected.
Finally, it is advisable for foreign architects carrying out construction projects on behalf of private individuals in France, to proceed with the appointment of a tax representative at the outset of the project. Indeed, the French VAT ID number of the Architectural Firm might be requested by the French Authorities when applying for a building permit related to a private house.
Foreign Construction Companies and French VAT
A foreign construction company is engaged in a building project in France. Invoicing rules will depend on the tax status of the principal in France. If the construction work is carried out on behalf of a principal identified for VAT in France, the invoice should in principle NOT include French VAT.
Considering the VAT exempt transaction (due to reverse charge mechanism), the foreign construction company will be entitled to obtain refund of VAT charged on purchases or imports of building materials in France.
However, the construction works carried out on behalf of a private individual (e.g. a house-building project) or a legal person not registered for VAT in France must lead to a billing that includes French VAT. The appointment of a tax representative could be necessary for the fulfillment of VAT obligations.
Professions in the Construction industry
- Bricklayer / Mason
- Carpenter (metal & woods)
- Crane operator / Crane driver
- Demolition worker
- Waterproof worker
- Glass / Mirror worker
- HVAC Installer (Heating, Ventilation and Air-Conditioning)
- HVAC Maintenance technician
- Carpenter fitter
- Carpet fitter