France confirms reporting and payment of 2021 0.46% sales tax for digital platforms on motorbike delivery services and ride sharing
France has provided details of the reporting and payment procedures for the new 0.46% turnover tax on digital platforms that provide transport services for their e-commerce sellers as well as ride-sharing platforms. The tax came into effect in 2021, and is now payable by the end of June for most taxpayers. For 2021, the tax has been set of 0.46% of relevant services.
Scope of French e-commerce transport turnover levy – gig & sharing economies
The tax is levied on the following services which arise from interactions on digital platforms:
- Ride-sharing of passengers by self-employed persons working in the gig or sharing economies
- Delivery of goods, including prepared food, by two or three-wheeled motorbikes, scooters and bicycles
Any electronic connection platforms facilitating these services, including setting the price and T&C’s, will be liable to the tax. They must also be VAT registered in France.
A UK delivery tax is also being considered.
The EU ecommerce package in July 2021 introduced marketplace deemed supplier obligations for certain goods transactions. The EU’s VAT in the Digital Age reforms are looking at a similar full liability for digital platforms. France marketplace reporting obligations were introduced in 2020.
Sign-up for our free VAT newsletter for global updates
France VAT country guide
| Highlights | Local term | Taxe sur la valuer ajoutée - TVA |
| VAT Rates - standard | 20% | |
| VAT Rates - reduced | 5.5%; 10%; 2.1%; 0% | |
| VAT number format | FR 12345678901 | |
| Registration threshold | Goods €91,800; Services €36,800 for resident; nil for non-resident businesses; €10,000 for pan-EU digital services and goods OSS return. Intracommunity acquisitions €10,000 | |
| VAT Group | French VAT group rules | |
| VAT recovery foreign businesses | Yes | |
| Fiscal Representative | French fiscal representative rules | |
| Currency | Euro €, January 1999 | |
| Administration | Introduction | VAT was introduced in France in 1954. It is a founding member of the European Union |
| VAT laws | Code Général des Impôt - CGI - the French Tax Code. Livre des Procédures Fiscales (Fiscal Procedures Code). Also EU VAT Directive which takes supremacy as part of EU membership | |
| Tax Authorities | Ministry of Economic Affairs and Finance (Ministère des Finances et des Comptes publics). For foreign entities: Service des impôts des entreprises étrangères (SIEE) at Noisy | |
| VAT Rates | Standard rate | 20% |
| Reduced rates | 5.5%: foodstuffs; cultural; live cultural and sport events; cinema; domestic Green spend; social housing; domestic power; books. 10%: takeaway foods; overnight accommodation; certain fish produce for consumption; public passenger transport; medicine; 2.1%: press publications; theatre; certain medicines; | |
| Zero-rated | Air and sea transport; sea vessels; exports outside of the EU; intra-community supplies of goods | |
| Exempt | Immovable property; betting; newly constructed property under 5 years old; financial services; education; healthcare; social welfare | |
| Scope of VAT | Scope of VAT | Provision of domestic taxable goods and services; EU imports; intra-community acquisitions; Distance selling of goods B2C (OSS or IOSS); receipt of services or goods via the reverse charge |
| Time of supply | Goods & Services (general rule) | Goods transfer of control which generally means delivery. Services when performed; |
| Reverse Charge | Time of supply of the service for both domestic and non-resident supplies | |
| Continuous Services | Generally at payment VAT period end | |
| Imports | Time of clearance into free circulation; or import VAT deferment | |
| Goods on approval and return | VAT liability arises at switch in ownership, so potentially only when approval period ends. | |
| Registration | VAT registration threshold | Goods €85,800; Services €34,400 for resident; nil for non-resident businesses; €10,000 for pan-EU digital services and goods OSS return. Intracommunity acquisitions 10,000 |
| Voluntary VAT registration | Yes, for resident businesses | |
| VAT number format | FR 12345678901 | |
| VAT Group | Until 2023, there is only a simple VAT group credit/debit offset regime. From 2023, linked companies may form full VAT group https://www.vatcalc.com/France/france-vat-groups-from-2023/ | |
| Non-residents | Extensive use of reverse charge for goods and services exempting non-French businesses from registering if customer (French or not) is French VAT registered. IOSS or OSS for distance selling from third countries | |
| Fiscal Representative | Non-EU countries must appoint an accredited French resident as fiscal representative unless reciprocity agreement (UK, Norway and several more which have bi-lateral agreement) https://www.vatcalc.com/vat/France-confirms-vat-fiscal-representation-countries/. The non-resident is then provided a SIRET-only number. Limited fiscal representation available for certain transactions with no VAT liability. IOSS B2C import VAT registrations requires 'Intermediary' for non-EU, and does share client's VAT liabilities. | |
| Digital Services | France participates in the EU single One Stop Shop (OSS) VAT return for digital, telecoms and broadcast services. This was formerly the MOSS regime until 30 June 2021 | |
| Pre VAT registration costs | Permitted for set-up and preparation costs | |
| VAT Invoices | Issuance | Immediately at time of supply (delivery; provision; payment) |
| Content | Date; unique, sequential invoice number; Name and address of supplier; VAT number; Description, quantity and date of supply of goods/services; name and address of customer; gross, VAT and net price; VAT rate applied; any discount applied; reasons and legal reference for any exemption; fiscal representative details if applicable | |
| E-invoices | French e-invoice rules Sept 2026 | |
| Simplified invoices | If not exceeding €150; limited customer requirements for certain B2C sectors such as café or restaurants etc; No invoice required for retail unless requested | |
| Self-billing | Permitted if agreed between customer and supplier. | |
| Retention of invoices | Six years. Records may be kept in France or another EU member state | |
| FX rules | European Central Bank on date of VAT payment due | |
| Invoice corrections | Via credit note only with reference to original invoice number | |
| Compliance | Right to deduct | Excluded: Staff accommodation. Staff mobile phones; VAT on goods used less than 10% for business; business gifts above €73 (2021); passenger transport; costs related to exempt supplies (partial exemption may apply) |
| Call-off stock | Non-residents may avoid the obligation to VAT register and record goods transfers where placed under the exclusive control of a French-resident taxpayer - Call Off Stock. This is limited to 3 months of the goods' movement. Goods held by supplier in warehouse where eventual customer is not yet known (B2B or B2C) requires French VAT registration (Consignment Stock). | |
| Reverse Charge - B2B | Foreign taxpayers if VAT registered or not - sales to French and non-French VAT registered taxpayers; supply and install; supply of gas and electricity even if both parties French resident; electronic communications; carbon trading; gold; waste and recycling goods; certain construction and repairs to immovable property | |
| Cash discounts | No requirement to issue a credit note if discount taken up; adjustment through VAT returns of seller and customer. | |
| Bad debt relief | VAT on bad debts may be reclaimed if reasonable proof of failed legal actions to recover before the end of the calendar after the original invoice date. | |
| Import VAT deferment | French import VAT deferment rules | |
| VAT warehouse | France has introduced a customs and VAT warehousing scheme in accordance with the EU VAT Directive. Non-residents typically need to VAT register to trade goods under such a scheme. Authorisation is required to operate a warehouse or use third party facilities. | |
| Supply & install | French VAT registration required where the goods manufactured and installed in France. If the supplier is non-resident, the customer becomes liable for VAT under reverse charge. | |
| Use and enjoyment services | Only on certain B2C services provided by non-EU supplier, including consulting and advertising require a French VAT registration. | |
| Capital goods adjustment period | Movable property: four years. Immovable property: 19 years | |
| Non-residents VAT recovery | EU businesses may reclaim French VAT through their home country's VAT portal under 8th Directive quarterly returns above €400, including annual claim by 30 Sept following year. Non-EU businesses may apply directly to French authorities via new (2021) online portal which requires invoice upload. No country reciprocity agreements required | |
| VAT on Digital Services | France follows the EU VAT on digital services regime, introduced in 2015. This includes participation in the One-Stop-Shop (OSS) single EU VAT return (formerly MOSS until 30 June 2021) | |
| Live events | No VAT registration by non-residents | |
| Distance selling threshold for goods | Nil. Following the EU ecommerce VAT package reforms from 1 July 2021, local French VAT must be charged on all sales by non-French EU e-commerce sellers shipping from within the EU. Imported distance sales not exceeding €150 liable to French sales VAT with IOSS return option | |
| Cash accounting scheme | For resident businesses with turnover below €300,00 per annum and no intra-community supplies | |
| VAT registered cash tills | N/a | |
| Statute of limitations | Three years | |
| Other | ||
| VAT Returns | Frequency | Monthly. Annual if taxable turnover below €4,000 per annum. |
| Filing method | Electronic via TéléTVA on the government VAT portal | |
| Deadlines (inc payments) | 19th of month following return period for non-residents. Between 21 and 24 for resident taxpayers *or next working day if holiday or weekend. Payment of any VAT on the same date via direct debit only. | |
| VAT credits | Excess input VAT may be reclaimed if above €760 in the monthly return (may trigger audit); or rolled over to next return | |
| Corrections | Either by replacement return or via credit return (which overwrites wrong entry with correct VAT liability). New return if above €4,000 corrective return | |
| Non-residents | 19th of month following return period for non-residents. | |
| Other filings | Intrastat and EC Sales Listing are combined into single monthly Déclaration d'echanges des biens - DEB. Intra-community Dispatches and Arrivals listed separately within the DEB.Threshold of €460,000 per annum for both. Due by 20th of following month. EC Sales Listing for services (Déclaration Européenee de Services - DES) due by 10th of following month. | |
| SAF-T | French SAF-T rules | |
| Penalties & interest | 5% of VAT due for late payments plus 0.2% per month ongoing interest charge; 10% for late filings | |
| B2C Distance Selling returns | France participates in the One-Stop-Shop pan-EU VAT return for distance selling, introduced in July 2021. |
