VAT compliance and reporting rules in France
Below is summary of the major rules provided under French VAT rules (Code Général des Impôt – CGI – the French Tax Code. Livre des Procédures Fiscales (Fiscal Procedures Code)), plus adoption of EU VAT Directive provisions. Check our country VAT guides for other jurisdictions.
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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. |
