V.A.T.

Invoices relating to services are issued by the USA according to US accounting stipulations and in US$. Since VAT does not exist in the USA, this tax cannot be added to invoices.

Where a Representative Office is registered in France or Europe and therefore is reputed not to have any of its own activity in the territory, it can depending on your requirements be subject or not to VAT

Because of its registration, it automatically receives VAT return form to fill in.

• If you do not want to be liable for VAT, you just have to send a certificate to the VAT department for them to cross your company's name off the listing.
• If you wish to be liable for VAT, you have to fill in the return normally and pay any sum due.

  Reason for choosing

Little VAT to be refunded

A lot of VAT to be refunded

In most consulting and services activities, VAT returns are very low (administrative equipement, small expenses). By choosing not to be liable, you loose your ability to get those sums back. BUT in exchange, the USA issues invoices free of tax, that is to say 19.60% less expensive than competition in France! A little loss in one hand is compensated for a big commercial advantage on the other hand.

If due to the nature of the activity there is a lot of VAT to claim back, it would be impossible to loose it. It therefore would be advisable to issue invoices from the Representative office (in France or Europe and adding the tax) and to fill in your VAT return.  The choice is yours depending on the amount in question