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, companies need to register for VAT once their turnover of the last 12 months exceed a VAT France threshold. For companies selling services in France VAT threshold is set at €34,400, while for sellers of goods it is €85,800.

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 VAT rate is set at 0%.

Registering for VAT

After exceeding the threshold for VAT France based 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 Mini One-Stop Shop below for more information.

Mini One-Stop Shop

The optional simplification measure called the “Mini One-Stop Shop” (MOSS) with respect to digital services, telecommunication services and broadcasting services supplied in a B2C context. The supply of these services is generally considered as taking place in the Member State of the customer, not the Member State of the supplier.The MOSS scheme allows all taxable persons supplying digital services, telecommunication services or broadcasting services to nontaxable persons in EU Member States in which they do not have an establishment, to account for the VAT due on those supplies via a web portal in the Member State in which they are identified. The MOSS allows qualifying taxable persons to avoid registering in each Member State of consumption. The MOSS simplification is available both for taxable persons established in the EU and outside the EU. The MOSS generally mirrored the scheme that was in place for non-EU established suppliers of electronically supplied digital services, telecommunication services or broadcasting services supplied to final consumers. Persons already registered under the pre-existing scheme for electronically supplied digital services, telecommunication services or broadcasting services, should retain their existing individual VAT identification numbers for the purposes of the MOSS.

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.