VAT in France guide

France VAT rates

• Standard rate: 20%
• Reduced rates: 2.1%, 5.5% and 10%

The standard VAT rate applies to all supplies of goods or services unless a specific measure provides for a reduced rate or exemption.

Quick facts about VAT in France

VAT

VAT in France is called ‘Taxe sur la valeur ajoutée’ or  ‘TVA’.

Threshold for VAT in France

Just like in other European countries, local companies need to register for VAT once their turnover of the last 12 months exceeds a VAT France threshold. Non-Resident sellers and service providers in France VAT threshold is set at €10,000, as in all of the EU countries.

Reduced rates

A reduced VAT index France based companies can pay ranges from 10% to 2.1% of the price of a good or service.  10% reduced rate to some cultural activities, bars, cafes, restaurants, domestic passenger transportation, etc.  E-books, medical supplies for disabled persons, etc., are eligible for a smaller, 5.5% reduced rate, while some pharmaceuticals, newspapers and livestock can charge the lowest reduced rate of 2.1%.

For companies working with intra-community and international transport in France, the VAT rate is set at 0%.

Registering for VAT

After exceeding the threshold for VAT local France companies can submit a registration form to the national tax authority called Service des Impôts des Entreprises.

VAT Registration France

The obligation for VAT registration in France might be triggered in different ways. Here is the the list of most common scenarios:

• Importing goods into France from non-EU countries;
• Buying and selling goods in France (excluding domestic reverse charge);
• Selling the goods from France to customers in other countries (B2B or B2C);
• Acquiring goods in France from another EU country (Intra-community acquisitions);
• Holdinging and storing inventory in France for selling, distribution or consignment;
• E-commerce sales of goods to French consumers, subject to Distance Selling VAT registration thresholds;
• Organising events in France where attendees or delegates are paying admission.

VAT number

After registering for VAT France based companies receive a VAT number that consists of the country code (FR) and 11 digits (in some cases, the code can have one or two letters instead of the first two digits).

French VAT for digital service providers

In case of digital services, telecom services or broadcasting services supplied in a B2B context, the place of supply is the place where the recipient is established. No French VAT should be charged, and reverse charge applies unless supplier and customer are established in France. In case of digital services, telecom services or broadcasting services supplied in a B2C context we refer to the section on the One-Stop Shop below for more information.

One-Stop Shop

On 1 July 2021 EU has introduced a so-called “One-Stop-Shop” (OSS) system which has replaced a previously applied “MiniOneStopShop” (MOSS) system. OSS has extended the scope of MOSS from digital goods and services to all goods and services sold B2C in the EU. OSS is an electronic portal that simplifies VAT compliance for online sellers, i.e., online businesses that sell goods and/or services in the EU are now only required to register for VAT in one EU country for all their B2C sales in the EU. If such sellers’ B2C sales in EU are above the applicable threshold, which is 10.000,00 EUR throughout the EU, businesses are liable to charge, collect and remit VAT in the Member State where their B2C buyers are located, instead of the Member State or country of their incorporation, i.e. online sellers have to apply the VAT rate of the Member State where the goods are dispatched or where the services are supplied. AS each EU Member State has an online portal where businesses can register for OSS and submit their VAT returns in one Member State for their B2C sales throughout the EU, it is estimated that VAT compliance costs will be significantly reduced. Registration in the OSS system is available for both – taxable persons established in the EU and outside the EU.

Late – registration penalties

No specific penalty is imposed for late VAT registration. However, interest and penalties apply if a return is absent and if a late registration results in the late payment of French VAT.

Fiscal representative France

Non-EU business which are selling in France will have to appoint a fiscal representative for the VAT registration and compliance in France.
Fiscal representative is jointly liable for the VAT compliance duties for non-EU companies.
Need a Fiscal Representative Service in France? 1StopVAT can provide it together with other Global VAT/GST/Sales tax compliance services.