Initial overview

Local tax name: “Taxe sur la valeur ajoutée” (TVA)
Tax management by French Ministry of Finance (http://www.impots.gouv.fr)

VAT rates in France

  • General: 20%
  • Reduced: 2.1%, 5.5%, 10%
  • Zero rate and exempt

VAT number format

  • FR 1 2 3 4 5 6 7 8 9 0 1 (11 characters)

Frequency of filing VAT returns

  • Monthly (Normal scheme)
  • Quarterly and annually (Simplified scheme)
  • Depending on the amount of revenue and output VAT charged in the previous year, there may be no obligation to file VAT returns.

Thresholds

  • Registration: There is no threshold.
  • Established taxpayers: There is no threshold.
  • Non-established taxpayers: There is no threshold.
  • Distance selling: From € 35,000.00 — (€ 10,000.00 from 1 July 2021)
  • Intra-Community acquisitions: € 10,000.00 (Under certain conditions)
  • Services provided by electronic means (MOSS): € 10,000.00

VAT recovery for non-established businesses

Companies not established in France may recover VAT if a number of requirements are met.

VAT registration obligations in France

Registration for VAT purposes in France is generally required when one of the following situations occurs in France by a company or business not established in that country:

  • The delivery of goods or services provided in France by a VAT taxable person.
  • Distance selling to consumers located in France, via online, internet, catalogue.
  • Import of goods from outside the EU, regardless of the status of the importer.
  • Buying and selling of goods in France if the consumer/recipient is not a French company with a local VAT number. In other words, when the reverse charge mechanism is not applicable.
  • Storage of goods/stock in France through warehouses or similar for more than 3 months.
  • Organize and hold fairs, conferences, events or attendance programmes by charging entry or admission fees.
  • The transfer of own goods and the intra-Community acquisition of goods in France, for goods transported from another EU Member State by a taxable person.

Deadline for registration in France. Any taxable person commencing its activity in France shall notify the French tax authorities of such commencement and register for VAT within 15 days.

If you have any doubts as to whether or not you should register for VAT in France, do not hesitate to contact us and we will analyse your case.

VAT rates

VAT TYPES RATE DESCRIPTION REGULATION
GENERAL 20% For most deliveries of goods and services. It is applicable to all those not expressly listed as having a reduced VAT rate. (Article 278 of the General Tax Code)
REDUCED 10% It is applicable to unprocessed agricultural products, firewood, repair and improvement work on housing when they are not eligible for the reduced rate of 5.5%. Certain accommodation and camping services, fairs and shows, theme parks and races, tickets for museums, zoo, monuments, passenger transport, waste treatment and catering. (Article 278 bis, 278 quater, 278 sexies A, 278 septies and Article 279 of the General Tax Code)
REDUCED 5,5% This concerns the main foodstuffs, women’s hygiene and protection products, equipment and services for the disabled, books of any kind, gas and electricity subscriptions, heat supply from renewable energy sources, school meals, live concerts/shows and cinema tickets, certain imports and shipments of works of art, work to improve energy efficiency for the home, social housing, purchase of one’s own home. (Article 278-0 bis and 278-0 bis A, Article 278 sexies of the General Tax Code)
REDUCED 2,1% This reduced rate is reserved for medicines that are refundable by the Social Security, the sale of live animals for slaughter and delicatessen to persons that are not considered as VAT taxable, television fees, certain entertainment shows and press publications. (Article 281 quater et seq. of the General Tax Code)
ZERO 0% Intra-Community and international transport (except road and the part of transport that goes through the interior of the country)

VAT returns

Both monthly and quarterly returns by companies resident in the EU shall be filed at the latest on the 19th day of the month following the end of the monthly or quarterly period concerned and VAT must be paid at the same time. In any case, based on the form of the company, the place where it is based and its business turnover, the possible returns to be filed in France are as follows:

TYPE OF RETURN FREQUENCY DEADLINE
VAT return Monthly From the 15th to the 24th of the month following the fiscal period ended.
Quarterly From the 15th to the 24th of the month following the fiscal period ended.
VAT return annex Monthly From the 15th to the 24th of the month following the fiscal period ended.
Quarterly From the 15th to the 24th of the month following the fiscal period ended.
EC listing Monthly Tenth business day of the month following the fiscal period ended.
Intrastat Monthly Tenth business day of the month following the fiscal period ended.
VAT GROUP return Monthly No later than the 24th of the month following the fiscal period ended.
8th Directive/VAT recovery Yearly During the month of January of the following year in which the right to a VAT refund was accrued.

Procedure for registration

Registration for VAT in France requires the completion of a form and its annexes describing the activity to be carried out in France. There is a specific form for companies established in the EU and another for companies established outside the EU. The application shall include the following documents:

  • Certificate of registration in the Commercial Registry in your own country of establishment.
  • Certificate of being a VAT taxable person in your own country of establishment.
  • Proof of your intention to carry out an activity subject to VAT in France.
  • Appointment of a tax representative in France, where the applicant is established outside the EU.

Registration takes about 4 weeks if the application has been correctly submitted and there are no additional information or documentation requirements from the French Tax Agency.

Appointment of a tax representative

Companies or businesses established outside the EU, except in the case of agreements between countries, are required to appoint a tax representative in France at the time of applying for registration and the French VAT number. The tax representative shall be known and accepted by the French authority and shall be liable for any debts that its principal may incur as a result of VAT that has not been charged and/or paid to the French tax authorities.

Other relevant information

Once your business is registered for VAT in France and has been assigned a French VAT number, your business is required to start complying with the local regulations in certain situations. This would mean:

  • To issue invoices with the details required by French law.
  • Electronic invoices upon agreement with the recipient in which the signature and authenticity of its contents are guaranteed.
  • Keeping of invoices and files for at least 6 years.

If your company or business needs to register for VAT in France and be assigned a French VAT number, do not hesitate to contact our VATONTIME team. We will be more than happy to help you.