France has indicated that it may make facilitating marketplaces the VAT deemed supplier on all import transactions. The EU intention is only to require marketplaces to take on the VAT obligation on imported sales of its third-party sellers if the consignment intrinsic value does not exceeds €150. The difference is contained within art. 293 of the French General Tax Code (CGI), which makes a facilitating marketplace liable for the VAT in all cases.
The EU VAT and digital platforms review may extend liabilities of marketplaces beyond the July 2021 e-commerce package plans. Harmonised marketplace tax reporting DAC 7 changes are already scheduled for
The policy stems for the European Commission opening up the right for Member State to decide freely on the person liable to pay the import VAT (either the customer or the supplier or the electronic interface – Article 201 of the VAT Directive). However, France appears to be overlooking the ≤€150 consignment limit being introduced in the EU e-commerce VAT package 1 July 2021
This follows news that the German ecommerce rules may still require EU distance sellers to remain VAT registered in Germany even if they use the single OSS return.
The EU has since published the package revised Guidance Notes which may result in a clarification.
The EU VAT ecommerce package introduces the new One-Stop-Shop single VAT return for distance sellers. And ends the distance selling thresholds. It also makes sellers and facilitating marketplaces liable for import VAT not exceeding €150. And introduces the new EU One-Stop Shop IOSS VAT return to declare the sales VAT on these sales.
