Appoint a fiscal representative in Monacoand make sure to be 100% VAT compliant

Basic information
EU membership	n/a
ISO code	MC
VAT introduced in Monaco	1963
VAT name in Monaco	Taxe sur la Valeur Ajoutée (TVA)
VAT ID format in Monaco	FR99900099999 (et n° de dossier fiscal 9999L L9999)
Territories with special status in Monaco	Monaco
VAT rates in Monaco
Standard VAT rate	20%
Reduced VAT rate (1)	10%
Reduced VAT rate (2)	5,5%
Super reduced VAT rate	n/a
VAT parking rate	n/a
Zero VAT rate	yes

Reporting frequency in Monaco

VAT returns	monthly, quarterly
Reporting currency	EUR
VAT-related penalties in Monaco
Failure to file a VAT return	Failure to file the returns used for the assessment or liquidation of turnover taxes shall incur a fine of EUR 15. The authorities may then send a formal notice to produce the documents within 30 days. If the document is not produced within this period, the fine is increased to €150.
Late payment of VAT	Failure to pay or insufficient payment or late payment of the tax due will incur payments for interest on arrears which shall be due independently of any penalties. The amount of interest on arrears is 0.20% of the total charged to the debtor or whose payment has been deferred, per month the payment is late. It is calculated from the first day of the month following the date the tax was due until the last day of the month of payment.
Failure to report ESL/DEB	Failure to file the returns detailed in Articles 73 and 74 within the time limits shall incur a fine of €750. This fine is increased to €1,500 if these declarations are not produced within 30 days of a formal notice. Each omission or inaccuracy in the returns submitted shall incur a fine of €15, which may not exceed a total of €1,500.
Useful links on VAT in Monaco
Tax Administration in Monaco	Department of Finance and Economy
Ministry of Finance in Monaco	Department of Finance and Economy
Check a VAT number in Monaco	n/a

Need VAT assistance in Monaco? Contact us now.

Appointing a tax representative or agent is sometimes an obligation, always a convenience.

A foreign company carrying out transactions in Monaco subject to Monegasque VAT, may be required to appoint a tax representative. Established in Monaco, the fiscal representative will fulfill the company’s VAT obligations to the Monegasque tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.

Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.

Why entrust your VAT obligations in Monaco to a tax representative?

To secure your operations, lighten your company’s administrative burden, and control tax risks in Monaco.
Intra-Community and Monegasque VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.

Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.

For VAT compliance in Monaco, choose EASYTAX

Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Monaco, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.

Need a tax representative in Monaco? Contact us now.

The Principality of Monaco, a 2.02 km² microstate on the Mediterranean Coast, is surrounded by 4 French communes, Cap-d’Ail, La Turbie, Beausoleil and Roquebrune-Cap-Martin, and is located less than 15 kilometres from the French-Italian land border. The Principality has direct access to the Mediterranean Sea and has two ports (Port Hercule and Port de Fontvieille), where it welcomes both commercial and pleasure vessels, making it a major player in the yachting/boating industry.

The Monegasque economy is well known for its service and industrial sectors, mainly in the following activities: wholesale and retail trade, construction, real estate, financial and insurance activities, scientific and technical activities, administrative and support services, accommodation and catering.

Although the Principality of Monaco is outside the European Union, it nevertheless enjoys close relations with the European Union. It is an integral part of the Community customs territory because of its customs union with France. It belongs to the euro zone and is integrated into the European VAT system following the agreements between France and Monaco signed on 18th May 1963 and 26th May 2003. Under these agreements, Monaco collects VAT and pays it to the French State, which in turn pays it back a share (shared account principle).

VAT regulations in Monaco are based on the laws and directives issued by the European Union on Intra-Community VAT, which are written into domestic law through princely orders and adapted where necessary. The regulations in Monaco are based on agreements between France and Monaco, the tax code for business revenue and princely orders.

Foreign companies carrying out operations falling within the scope of VAT in Monaco must register for VAT with the Monaco Tax Department through an accredited tax representative. The company can then invoices according to local VAT rules and deduct the VAT paid on its purchases in Monaco or in France. In the context of real estate work carried out in the Principality, each foreign company working directly or as a subcontractor on territory belonging to Monaco is required to obtain an authorisation issued by the Department of Economic Expansion and at the same time to appoint a tax representative.

The VAT rates currently in force in Monaco are as follows:

• Standard VAT rate: 20%
• Reduced VAT rate (1): 10%
• Reduced VAT rate (2): 5,5%
• Super reduced VAT rate: n/a
• VAT parking rate: n/a
• Zero VAT rate yes

Need a tax representative in Monaco? Contact us now.