Artists who are community nationals having freelance status (invoice, contract, contributions)
Sunday, 15 June 2008
“Can a freelance Polish artist from the new EU member states invoice his services in France if in possession of form E10? Should the VAT be paid to the artist by the French user if the latter has the intra- community number? Are any welfare contributions due (vacation pay (performing arts))? Should the deduction at source be made by the French user?”
Since 1 May 2004, nationals from the ten new Member states benefit from all the applicable provisions with respect to provision of services and secondment, under the same conditions as nationals of the other European Union countries.
When a freelancer from the Community can vouch for continued social welfare cover in his state of residence by producing an E101 form, duly completed by the relevant institution in his country of residence, the said individual is exempted from joining (and thus paying contributions to) the social security, unemployment benefit and private pension system in France.
If the Community national ordinarily works as a freelancer in his home country, point 14.2-1a in section 5-1 of form E101 should be ticked.
In order to be entitled to freely provide services as a self-employed person on French territory, the following must be established:
1. the self-employed person works lawfully in his country (proof of registration in a trade register if this is mandatory in his home country);
2. he works to a considerable extent in his home country, in other words his business is essentially aimed at his home country (most of his revenue is generated in the home country; most of the invoices and/or service contracts in the home country);
3. the conditions for his working on French territory do not make him in any way answerable to the recipient of the service in France.
If these conditions are met, this Polish freelance artist can invoice his services in France without owing any contributions to French welfare organizations and no temporary work permit is required.
VAT is due in France. If the French entity is liable for VAT, the reverse charging mechanism applies (see article Services provided by a foreign firm, modification in VAT regulations )
In any event, all sums paid to the said artist are subject to a 15% deduction at source (see Deduction at source on artistic services ).
See also:
Presumption of salaried status for a foreign artist
Presumption of salaried status for entertainment artists: the ECJ gave its ruling on 15 June 2006
Presumption of salaried status: exclusion of European freelance artists working on a temporary basis
