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VAT registration in France

  • Currency: EUR

  • VAT is called: Taxe sur la Valeur Ajoutée, abbreviated VAT

  • EU member: Yes

  • Format VAT number: FR99999999999, FRX9999999999, FR9X999999999 or FRXX999999999

  • VAT rate: 20%, 10%, 5.5%, 2.1%

Foreign companies that are not established in France, but that sell goods or services domestically in France, can in most cases avoid VAT registration. The reason is that France applies Reverse Charge ("Autoliquidation") if foreign companies sell exclusively to businesses that are VAT registered in France. Reverse Charge means that the buyer must collect the VAT and that the seller invoices without VAT. However, the buyer's VAT number and why you invoice without VAT must be stated on the seller's invoice.

Does the foreign company e.g. However, VAT registration may be required for any of the following activities in France:

  • Internet sales to private individuals in France of goods (when the value exceeds the threshold value for distance selling currently EUR 35,000)

  • Sales of electronic or telecommunications services to private individuals in France

  • Transport of goods from France to other countries carried out on behalf of private individuals, e.g. removal of household goods

  • Passenger transport in France

  • Own inventory in France (only registration for intrastat when the threshold for intrastat - EUR 460,000 has been exceeded)

  • Business management on site in France

  • Purchase of goods from the EU to France or sale of goods to the EU from France

  • Import to or export from France

  • Resale of several types of costs (eg hotel accommodation or bus transfers in France) that occur at conferences, trade fairs, etc.

VAT registration in France

The application for VAT registration in France, is made on special forms sent to the Directorate of Residents à la étranger et des Services Generaux, Noisy Le Grand, France. The forms are written in French and the forms must provide detailed information about planned activities, estimated turnover of the taxable activities, any places of business, ownership structure, etc. It is quite complicated to fill in, not least considering that everything is in French. You must of course apply for VAT registration in good time before the taxable activities begin, but you can also register retroactively. VAT registration in France usually takes 2-3 weeks. The tax authority then returns and issues a French VAT number.

Voluntary VAT registration in France is not allowed.

VAT accounting in France

The VAT reporting period can be quarterly, monthly and in some cases even years depending on annual sales. If you conduct EU trade to and from France, in addition to the VAT report, you must also submit a periodic summary. If the flows exceed the intrastate threshold, you must also leave the intrastate. If you transfer goods to France, set up a warehouse, but only sell domestically to VAT-registered businesses in France, you can apply Reverse Charge at the time of sale and will not be liable to tax in France. If the value of transferred goods exceeds the threshold value for intrastat, you must report intrastat and for this you need a French VAT number.

In general, it can be said that it is not very easy to fulfill your declaration obligations in France as in other countries, once you have managed to register for VAT. Foreign taxpayers, just like local companies, are expected to know the local deduction rules for VAT and otherwise the regulations that taxpayers in the country in question must follow. In addition, the electronic VAT returns prescribed may be difficult for foreign companies to submit. Each country has its own system for this and in many countries e.g. that the signatory has a personal identity number from the country or that he or she personally collects a code for online reporting from the tax authority in the country.

In France, you will receive your code together with your VAT number from the French tax authorities. With the code, you can log in to the electronic portal and once inside, you must retrieve information about which reports to submit and how to submit them. Both the reports and the instructions for filling in are only written in French. It is also more difficult with France in particular to make SEPA payments compulsory, i.e. Payments of VAT must be made from a SEPA account which must be ensured that it is posted against the electronic portal of the French tax authority, but the taxpayer is responsible for the payment from the SEPA account being activated and received by the tax authority. If something goes wrong, it can trigger a delay fine.