Paying an influencer through a foreign company could expose you to a tax audit

A company that sells teeth-whitening products had hired an influencer to promote its products.

The service was paid for by a payment made to a U.S. LLC.

Following a tax audit of the French company,administration the company should have withheld tax from the remuneration paid to the U.S. company, in accordance with Article 182 B of the General Tax Code. They therefore issued a tax assessment to the U.S. company.

The reassessment was challenged all the way to the Administrative Court of Appeals.

The company will then point out that it conducted business in France and that the influencer’s services were therefore used in France, especially since she was a French resident.

The court will also rule that even though the U.S. companyhad"no physical or human resources in the United States" and the influencer was working from home or another location, this does not demonstrate the existence in France of"a permanent business establishment in France in 2017 within the meaning of the aforementioned provisions of Article 182 B."

The Court finds that there is no stable structure established in France that contributes to the operation of the business.

It therefore upholds the tax assessment against the company that should have withheld the tax at source.

CAA Marseille, April 16, 2026, No. 24MA02843

This monitoring service is provided by Mispelon Avocat, a law firm specializing in tax audits and tax litigation. You can stay updated by subscribing to the newsletter via this link.