Works carried out on a property located in France (construction, renovation, installation) are taxable at the place where the property is located, regardless of the service provider's country of establishment — an exception to the general rule of taxation at the customer's location. Between two taxable persons, the reverse chargeA mechanism shifting the obligation to declare and pay VAT from the supplier to its taxable customer. Learn more → mechanism shifts the obligation to declare and pay VAT from the service provider to its customer.
This mechanism doesn't necessarily remove every reporting obligation: depending on the flow of materials imported or transferred from another Member State, French VAT registration and EMEBIThe French monthly statistical survey on intra-EU trade in goods, known internationally as Intrastat. Learn more → monitoring may still be required.
At the same time, any foreign company posting workers to a site in France must meet obligations specific to posted work, distinct from VAT: a prior declaration via SIPSI, managing withholding tax (PASRAU/PAS), and a BTP professional ID card for each worker.
Are you affected?
- Foreign company carrying out works on a property located in France
- Subcontractor operating within a chain of contractors on the same site
- Posting workers to a French site, with or without prior VAT registration
How we proceed
Assessing your VAT obligations
Reviewing the project, the subcontracting chain, and whether the reverse charge applies.
VAT registration if required
Obtaining a French VAT number and handling CA3/EMEBI filings for the duration of the project.
SIPSI declaration
Filing and following up the prior posted-worker declaration with the labour inspectorate.
PASRAU/PAS and BTP card
Bringing your posted workers' withholding tax into compliance, and handling the BTP card application for each of them.
Frequently Asked Questions
Does a foreign construction company need to register for French VAT?
In most cases, yes. Works on a property located in France are taxable where the property is located (not where the service provider is established), which generally triggers French VAT registration — unless the reverse charge applies in full between taxable persons.
What is the reverse charge on real estate works?
It is a mechanism shifting the obligation to declare and pay VAT from the service provider to the customer, where both are taxable persons. It does not apply to individual (B2C) customers, who cannot self-account for the tax.
What is the BTP card and who needs to apply for it?
The BTP professional ID card has been mandatory since 2017 for any worker on a construction site in France, including workers posted by a foreign company. It is the employer's responsibility to apply for it for each worker on a French site.
How do I declare posted workers via SIPSI?
Any foreign company posting workers to a site in France must file a prior posting declaration with the labour inspectorate via the SIPSI online service, before the assignment begins.
Does a foreign subcontractor on a French site need to charge VAT?
This depends on the subcontracting chain and the status of each party. Where several subcontractors are involved on the same site, each contractual relationship needs to be reviewed separately to determine whether the reverse charge applies.