What is a limited agent in France?
A limited agent in France is a person who acts on behalf of a company or an individual to accomplish a specific task. This task may be related to commercial transactions, administrative or legal formalities. The one-time agent is responsible for representing his client and making decisions on his behalf, respecting the instructions given to him.
What are the specificities of the limited agent in France?
Here are some important specifics to know:
- Limited duration: The limited agent is by nature temporary and limited in time. It is established for a specific task or mission and ends once that mission is accomplished.
- Specific powers: The limited agent is given specific powers to act in the name and on behalf of the principal in a specific situation. These powers are generally precisely defined in the mandate.
- Legal formalities: The appointment of a limited agent may require legal formalities depending on the case. For example, to represent a legal person (a company), it may be necessary to go through a resolution or decision duly authorized by the competent bodies.
- Limited liability: The limited agent assumes liability only for acts performed within the framework of the mandate entrusted to him. Once the mission is completed, he is no longer responsible for future actions.
- Written contract: It is recommended to draw up a written contract or a document of mandate specifying the terms and conditions of the limited mandate, including the powers granted and the limits of liability.
- Transparency and fidelity: The limited agent must act in the principal’s interest and strictly comply with the instructions given to him. He must also be accountable for his actions and the use of the powers entrusted to him.
It is important to note that the specifics of the limited agent may vary depending on the specific context in which it is appointed. It is therefore recommended to consult a professional such as Eurotax in order to obtain advice specific to your situation.
Who should use a limited tax agent in France?
According to the regulations, companies established in the EU carrying out transactions subject to VAT on French territory must register for VAT in France.
However, companies established in the EU which only import into France under customs procedure 42 and which are immediately followed by intra-Community deliveries to other EU Member States may, depending on the case, be exempted from registration to VAT in France by appointing a limited tax agent.
Namely that there are two conditions which do not allow an EU company to appoint a limited tax agent in France:
- A business established in the EU that already has a French VAT number;
- A company established in the EU which carries out operations in France other than imports under customs procedure 42 and which are immediately followed by intra-Community deliveries.
Why use a limited tax agent in France?
The designation of a limited tax agent in France, allows the company which has import operations under regime 42 and intra-community deliveries can use the VAT number of the one-time tax agent and all these operations will be reported on the VAT & EMEBI declarations of the limited tax agent.
This is how the company that uses a limited tax agent avoids the costs and formalities associated with obtaining a VAT number.
Eurotax offers you its limited tax agent service in France, do not hesitate to contact us if you need any help with your tax inquiries.