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FRANCE

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France has a value-added tax (VAT) system known as "Taxe sur la Valeur Ajoutée" (TVA) with a standard rate of 20% and reduced rates of 5.5% and 10% for certain goods and services.

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Fiscal representation in France

The fiscal representative is responsible for ensuring that the non-resident company complies with all French VAT rules and regulations, including the submission of VAT returns and payment of VAT, as well as representing the non-resident company in any tax-related matters or disputes.

In general, a fiscal representative is required when a non-resident company has no permanent establishment or fixed place of business in France.

French VAT reverse charge

In France, the reverse charge mechanism applies to certain supplies of goods and services where the VAT liability shifts from the supplier to the customer. Under the reverse charge mechanism, the recipient of the goods or services is responsible for reporting and paying the VAT due to the French tax authorities, rather than the supplier.

The reverse charge mechanism applies to various types of transactions in France, including:

  1. Intra-community acquisitions of goods: When a French VAT-registered business purchases goods from another EU country and imports them into France, the recipient is responsible for reporting and paying the VAT due on the transaction.

  2. Services provided by non-established businesses: When a non-established business provides services to a French VAT-registered business, the recipient is responsible for reporting and paying the VAT due on the transaction.

  3. Certain domestic transactions: The reverse charge mechanism may also apply to certain domestic transactions, such as the supply of goods subject to excise duty.

It's important to note that the reverse charge mechanism can be complex and may vary depending on the specific circumstances of the transaction. In addition, there are certain exemptions and special rules that may apply in certain situations.

 

Contact one of our experts for more information on the requirements and procedures for the reverse charge mechanism in France.

French Import VAT reverse-charge

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