All non-resident or foreign French VAT registered companies are required to prepare and submit their accounting statement in a prescribed electronic format for audits starting after 1 January 2015. This is an extension period, where the same obligation for resident French companies closed up at the end of 2012.
In addition, this will place new French GAAP accounting requirements on foreign traders in order for them to submit any files. Companies are compelled to issue their files in an accounting entry file (AEF). This includes a Fichier des Ecritures Comptables – Taxe sur la Valeur Ajoutée (FECTVA) file, declaring all sales and purchases previously declared in the French VAT returns. Each entry must include up to 18 data fields based on the decree.
Fines for the presentation of the FECTVA will be 10% of any additional tax assessed, with a minimum penalty of Euro 5,000. But a tax inspector may levy a total fine of 100% in the case of obstruction.
