gers32 Posted January 30, 2007 Share Posted January 30, 2007 I am a UK registered builder and have been approached to work in France. Lmited company, VAT registered and would be declaring all taxes on this project. The client now advises that they are concerned that I would not be legal. Is this true? Link to comment Share on other sites More sharing options...
Wilko Posted February 1, 2007 Share Posted February 1, 2007 HiYes, you are legal.Rgds Wilko Link to comment Share on other sites More sharing options...
Nick Trollope Posted February 2, 2007 Share Posted February 2, 2007 Uk limited company? UK VAT registered? Paying taxes in the UK?You most certainly would not be legal! The building industry is heavily regulated in France & noone can just turn up & do it. Read the numerous posts on this forum on this very subject. Link to comment Share on other sites More sharing options...
Albert the InfoGipsy Posted February 2, 2007 Share Posted February 2, 2007 Nick, my understanding is that if you are genuinely UK-based and this is a short-term one-off contract then you're OK, although there may be insurance issues. As the OP appears to have a home in France then the authorities may get much more suspicious. Link to comment Share on other sites More sharing options...
Lori Posted February 3, 2007 Share Posted February 3, 2007 OP posted the same question in the Legal section. Different answers there. Link to comment Share on other sites More sharing options...
Nick Trollope Posted February 3, 2007 Share Posted February 3, 2007 [quote user="Albert the InfoGipsy"]Nick, my understanding is that if you are genuinely UK-based and this is a short-term one-off contract then you're OK, although there may be insurance issues. As the OP appears to have a home in France then the authorities may get much more suspicious.[/quote]There is no such thing as a "short-term contract" (in this context, in this industry). All the "foreign" workers we see here are working for French organisations or illegally. The problem is actually really simple - the mandatory insurance needed to operate in France is only available from French issuers to French registered organisations. No registration = no insurance = illegal. Link to comment Share on other sites More sharing options...
Cerise Posted February 3, 2007 Share Posted February 3, 2007 Nick - I'm sure you may be correct as nothing is ever straightforward here. However, near us a house was being renovated by builders from Germany. As I know someone involved I asked the question and was told that the workers in question were properly insured and registered in their own country - which included the provision for them to work abroad for a limited period. The owner of the property may not have French decennial insurance but is aware of that. So what mandatory insurance that they don't have? Many French artisans don't have it either and no one seems to close them down. These people were quite open (they were here for about 4 weeks). My husband's boss - who is French artisan - was muttering direly about it, but conceded that he thought it was legal. The owner of the house will obviously not be able to set off this against CGT, if they needed to, I suppose - but, have they actually done anything illegal?Our house is renovated (we did most of it ourselves and French artisans the rest) so have no ulterior motive in asking this. Just curious, that's all - have to say I understand someone not wanting to wait months, nay, years for an artisan to finally hove into view! Often told that things are 'illegal' but no one seems to know why. I myself am incredibly suspicious of this wondrous 10 year insurance as I often wonder what would happen of you were unable to find the artisan in question at the end of, say, 8 years? So many companies who do plumbing, electrics, windows etc seem to disappear after a few years - would the insurance still cough up? Link to comment Share on other sites More sharing options...
Will Posted February 3, 2007 Share Posted February 3, 2007 Arguably, rather than definitely, if the British (or German) builder has public liability insurance from his own country that is valid and legal in France, is working on an E101 form (i.e. short term posting overseas), and is prepared to offer a 10-year guarantee on his own workmanship and any materials supplied by him, then I think he should be able to work within the law. Of course, there are other considerations, like capital gains tax and being unable to use the lower TVA rate, but they are financial rather than legal issues. Link to comment Share on other sites More sharing options...
Nick Trollope Posted February 3, 2007 Share Posted February 3, 2007 Protection civile & risques professionelle, which are mandatory, can only be issued to a registered person or organisation (in France) by a French issuer, making it impossible for a contractor to be legal - insurance issued in Germany may be valid here, but it is not acceptable to the French authorities...I'm not getting into this argument again, I really can't add anything to what has already been said. If you don't believe me/don't want to believe me, then check it out with the authorities. Link to comment Share on other sites More sharing options...
BJSLIV Posted February 3, 2007 Share Posted February 3, 2007 This link seems to give an authoritative statement of the position.http://www.clermont-fd.cci.fr/europe/doss/2006/0906.phpBriefly If a company registered elsewhere in the EU wishes to provide building services it can, with relatively little bureaucracy, provided the contact does not exceed 12 months. The workers do not have to join French insurance system and can remain in, for example, the UK NI system.Before starting work the local employment authority must be notified.French working hour regulations must be obeyed 35 hour week etc.Work must be covered by a ten year insurance cover.If the work is being done for a person/ body not registered for VAT then French VAT must must charged.Well I did say relatively little bureaucracy. As Nick has hinted the Catch22 is that it is probably impossible for a foreign company to obtain the appropriate insurance cover. Others have pointed out that large companies sometimes have foreign contractors doing work on their sites, but I suspect that this is probably achieved by sub-contacting of work to linked companies within multinational groups.Some of this will of course be simplified in about five years time when the new EU rules for the supply of services are implemented. Link to comment Share on other sites More sharing options...
Cerise Posted February 4, 2007 Share Posted February 4, 2007 Thanks for the link BJSLIV - that makes things clearer. Nick - do believe you and not trying to disagree, just to understand. Link to comment Share on other sites More sharing options...
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