France VAT for Amazon, eBay, and Shopify Sellers: What You Must Know

While there are many lucrative markets in the European Union, France stands out as one of the largest and most digitally mature e-commerce markets. With over 50 million active internet users, a high rate of online shopping adoption, and strong logistics infrastructure, it presents an attractive opportunity for global sellers.

Major platforms like Amazon, eBay, and Shopify have a significant footprint in the French market. This makes it a natural expansion target for international businesses looking to grow their EU customer base.

However, with opportunity comes obligation. One of the most critical obligations is Value Added Tax (VAT) compliance. France’s VAT regulations are strictly enforced by the French tax authorities (Direction Générale des Finances Publiques). Non-compliance can lead to heavy penalties, account suspensions, or even a ban from operating within the EU.

For sellers using Amazon FBA, it is important to note that storing goods in France automatically creates a VAT liability. Similarly, Shopify and eBay sellers must manage VAT registration, invoicing, and reporting correctly if they cross EU sales thresholds or sell directly to French consumers.

This is where professional support becomes essential. Global Trade Business Limited specializes in helping businesses navigate EU VAT compliance, including France-specific VAT registration, filing, and advisory services.

With a network of over 30 local agents across the EU, Global Trade Business provides a single point of contact to streamline complex VAT obligations, including OSS, IOSS, and standard VAT registration.

Understanding the French VAT Landscape

Launching in France for the first time? Planning to scale your operations? Whichever the case, understanding the French VAT landscape is essential.

Who Needs To Register For VAT in France?

If you want to maintain compliance and avoid fines, it's important to understand when and why you need to register for VAT in France. The rules vary depending on whether your business is based within or outside the EU, and how you sell and deliver your goods.

If your business is based outside the European Union (say in the UK, the US, or Asia), you will typically be required to register for France VAT in the following situations:

• Storing goods in France: If you use Fulfilment by Amazon (FBA) or any third-party logistics provider with warehouses in France, you must register for VAT. Storing goods on French territory triggers a fixed establishment for VAT purposes, regardless of sales volume.

• Selling directly to French consumers: Even if you're not storing goods in France, selling and shipping to individual customers within France from abroad can create a Value Added Tax obligation. This is especially true if you're importing goods or shipping from another EU member state.

• Distance selling into France (prior to OSS registration): If you do not use the One-Stop Shop (OSS) scheme, and your sales to *French consumers exceed the €10,000 annual EU threshold, you're required to register in France for local VAT and begin charging French VAT on your sale.

  
  

Important: Non-EU sellers may also be required to appoint a fiscal representative to act on their behalf in France. Global Trade Business Limited can assist with this requirement via our network of local *VAT agents

If your business is registered in another EU member state, you may still be obligated to register for VAT in France under several circumstances:

• Crossing the EU-wide distance selling threshold (€10,000/year): If your cumulative sales to consumers in all EU countries (excluding your own) exceed this amount, you must either:

1. Register for OSS in your home country and report sales in France via OSS, or

2. Register for VAT directly in France and file French VAT returns.

• Storing goods in France: Using Amazon FBA or warehousing inventory in France immediately triggers the need to register for French VAT, even if sales volumes are low.

• Dropshipping to French customers: If you act as the seller of record and control the movement of goods into France, you may need to register for VAT depending on your logistics setup and whether you use OSS.

  
  

Amazon FBA, Warehousing, and VAT

For Amazon sellers using FBA, VAT registration in France is not optional if you allow Amazon to store inventory in French fulfillment centers. This includes sellers participating in Amazon's Pan-European FBA program, where goods are moved across multiple EU warehouses to optimize delivery speed.

• Once Amazon transfers your goods into a French warehouse, even without your explicit request, it creates a local VAT obligation.

• Sellers are required to obtain a French VAT number and file periodic VAT returns, declaring sales and stock movement in and out of France.

  
  

If you’re unsure whether your goods are being stored in France, Amazon provides a VAT Transactions Report (VTR) that shows inventory movements by country. Sellers should review this regularly.

France VAT Rates and What They Apply To

If you are selling goods or services to French consumers (whether through Amazon, eBay, Shopify, or your own online store), understanding the correct VAT rate is crucial. France applies multiple VAT rates depending on the type of product or service. Charging the wrong rate can lead to compliance issues, audits, or penalties.

Current VAT Rates in France (as of 2025)

France has four primary VAT rates:

| VAT Rate | Application |

|------------------------|--------------------------------------------------|

| 20% (Standard Rate) | Applies to most goods and services |

| 10% (Reduced Rate) | Transport, restaurant meals, some cultural events |

| 5.5% (Reduced Rate) | Food, books, medical equipment, energy-saving goods |

| 2.1% (Super Reduced Rate) | Medicines reimbursed by social security, some press publications |

It is important to note that most e-commerce goods will fall under the 20% standard rate unless explicitly listed under reduced categories.

How VAT Applies to Common E-commerce Products

For sellers using Amazon FBA, eBay, or Shopify, here’s how VAT typically applies in the French market:

• Clothing & Accessories: 20% standard rate

• Electronics (phones, computers, accessories): 20% standard rate

• Home goods (furniture, kitchenware): 20% standard rate

• Cosmetics and beauty products: 20% standard rate

• Books (physical): 5.5% reduced rate

• Children’s clothing: 20% (France does not apply the lower rate used in some other EU countries)

• Food and non-alcoholic beverages: 5.5% or 10%, depending on the product and packaging

• Digital goods (eBooks, downloadable software): 20% (with some exceptions for cultural media, e.g. eBooks at 5.5%)

• Shipping & handling fees: Usually taxed at the same rate as the product being shipped

  
  

For bundled goods or promotional offers, the correct VAT rate should be determined based on the primary product and applicable pricing breakdowns.

What About Digital Products and Services?

When selling digital goods or services (e.g., streaming content, downloadable apps, e-learning, or subscription software), you must charge French VAT based on the location of the buyer, regardless of where your business is established.

• The VAT rate is generally 20%.

• Sellers are required to comply with EU-wide VAT rules on digital services, which require customer location validation (e.g., IP address, billing address).

• Non-EU sellers must either register for VAT in each country or use the Non-Union OSS scheme for centralized filing.

  
  

Shopify, for example, offers tools to help configure digital VAT rules. However, sellers remain responsible for proper setup.

Common Mistakes Sellers Make

1. Charging the wrong VAT rate on reduced or exempt items.

2. Assuming all EU countries have the same rate structures.

3. Failing to apply VAT to shipping fees.

4. Ignoring the VAT obligations on digital services.

   
   

To stay compliant, always confirm the VAT rate category of your product with the French tax authorities or your VAT advisor.

Platform-Specific VAT Considerations

Amazon

• Using Amazon's Fulfillment by Amazon (FBA) service in France requires VAT registration.

• Amazon may collect VAT on behalf of non-EU sellers, but sellers are still responsible for compliance.

  
  

eBay

• eBay is obligated to ensure VAT compliance for sellers on its platform.

• Sellers must provide accurate VAT information and ensure proper collection and remittance.

  
  

Shopify

• Shopify sellers are responsible for setting up VAT collection and remittance.

• Proper configuration of tax settings is essential to ensure compliance.

  
  

OSS and IOSS Schemes: Are They Relevant for Selling in France?

The OSS (One-Stop Shop) and IOSS (Import One-Stop Shop) schemes are part of the EU’s VAT reform to simplify cross-border e-commerce. While both offer major compliance benefits, sellers must understand their scope and limitations, especially when selling in France through Amazon, eBay, or Shopify.

What Is the OSS (One-Stop Shop) Scheme?

The OSS scheme allows EU and non-EU businesses selling goods within the EU to report and pay VAT through a single VAT return, rather than registering in each individual EU country.

OSS is ideal for:

• Distance sales to consumers in multiple EU countries (including France).

• Businesses with no physical inventory or warehouses in France.

• Shopify and eBay sellers who ship goods from one EU country to others.

  
  

What Is the IOSS (Import One-Stop Shop) Scheme?

The IOSS scheme is designed specifically for the sale of imported low-value goods (worth €150 or less) to EU consumers. It allows sellers to collect VAT at the point of sale and simplify customs clearance.

IOSS is useful for:

• Non-EU sellers shipping small parcels to French customers.

• Dropshipping models and direct imports.

• Sellers who want to speed up delivery by avoiding VAT payment at the border.

  
  

It is important to note that while *IOSS is optional, without it, your French customers may face customs delays and unexpected VAT bills

When Are OSS and IOSS Not Enough?

While both schemes simplify VAT compliance, they do not replace local VAT registration in all cases. You’ll still need a French VAT number if:

• You store inventory in France, e.g., through Amazon FBA or a third-party fulfillment center.

• You import goods into France and sell them domestically outside the IOSS €150 limit.

• You are not eligible for IOSS (e.g., for higher-value goods or B2B sales).

• You sell services or run marketplace operations that require local VAT invoicing.

  
  

Amazon sellers are especially affected. Participating in Pan-EU FBA automatically involves inventory storage in France, meaning OSS/IOSS is not sufficient. You must register for VAT in France and file local returns.

VAT Registration and Filing in France

Registration Requirements

• Obtain a French VAT number by submitting necessary documentation, including business registration details and identification.

  
  

Filing Obligations

• VAT returns are typically filed monthly or quarterly, depending on turnover.

• Accurate record-keeping and timely submission are essential to avoid penalties.

  
  

Global Trade Business Limited provides expert guidance on VAT registration and returns, ensuring compliance with French regulations.

Penalties for Non-Compliance

Failure to comply with France VAT obligations can result in:

• Fines and Interest: Late registration or filing can incur financial penalties.

• Legal Action: Persistent non-compliance may lead to legal proceedings.

• Business Disruption: Non-compliance can result in the suspension of marketplace accounts.

  
  

Ensuring timely and accurate VAT compliance is crucial to maintaining business operations in France.

How Companies Can Claim Refunds on Deductible Intra-EU Purchases

Every company operating within the EU may be entitled to a refund on deductible taxes paid on purchases related to taxable business activities. Eligible companies can submit a form annually to reclaim taxes on purchases made in another EU country — known as intra-EU refunds. This applies to costs like airport transport, property rentals, and other taxable services.

To qualify, the company must provide its valid intra-EU VAT code and ensure the purchases are used for taxable purposes. Many companies miss out on these refunds each year, even though the process is relatively free of charge with the right guidance. Whether it's a form submitted for travel costs from the airport or office property, staying compliant with code requirements can ensure companies receive the refund they deserve each year.

How Global Trade Business Limited Can Help

At Global Trade Business Limited, we specialize in EU VAT compliance, offering services including:

• VAT Registration and Returns: Assistance with obtaining VAT numbers and filing returns.

• OSS and IOSS Solutions: Guidance on registering and managing OSS and IOSS schemes.

• VAT Refunds: Support in reclaiming eligible VAT expenses.

  
  

With a network of over 30 local agencies across EU member states, Global Trade Business Limited provides a single point of contact for comprehensive VAT solutions.

In conclusion, navigating France's VAT landscape is essential for Amazon, eBay, and Shopify sellers aiming to expand in the EU market. By understanding registration requirements, platform-specific obligations, and leveraging OSS/IOSS schemes, businesses can ensure compliance and avoid potential pitfalls.

https://www.globaltrade.business/ stands ready to assist with all aspects of VAT compliance in France and across the EU. If you are ready to simplify your VAT compliance, we encourage you to book a call with our experts today!