Whereas a permanent establishment brings short-term advantages thanks to its simplicity and its flexibility, european groups often forget that a dedicated bookkeeping must be done for their permanent establishment. Moreover, the tax situation must be analyzed in details. For example, the deduction of VAT can be limited at the local level for permanent establishment not having any turnover with third parties. If you intend to open a permanent establishment in France, please ask first our advice. A change can turn to be very difficult once the PE has been opened.