VAT registration in France: Businesses meeting the threshold for VAT registration must register with the French tax authorities to obtain a VAT number. 

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• This enables them to charge, collect, and remit VAT on their taxable supplies. 

• - VAT Rates and Invoicing: Businesses must correctly apply the appropriate VAT rates to their goods or services and issue valid VAT invoices to customers. Invoices should contain specific information required by French VAT regulations.

•  - VAT returns in France:  Businesses are responsible for submitting regular VAT returns to the tax authorities, reporting their VAT liabilities and input tax credits. Returns must be filed within the prescribed deadlines and reflect accurate calculations. 

• - French Intrastat Reporting: If a business exceeds the threshold for intra-EU trade, they may be required to submit regular Intrastat returns. Intrastat reports provide statistical information on the movement of goods between EU member states. 

• - Reverse Charge Mechanism: Businesses should understand and apply the reverse charge mechanism correctly in specific situations where the recipient is responsible for reporting and paying the VAT instead of the supplier. 

• - VAT Compliance Documentation: It is important to maintain proper records and documentation to support VAT transactions, including invoices, VAT certificates, and relevant business documents. 

• - Compliance with VAT Rules and Regulations: Businesses should stay updated with any changes or updates to French VAT legislation and ensure compliance with all applicable rules and regulations.

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• VAT returns and refund in France

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When do you need to submit a VAT return?

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Monthly VAT return: When registering for VAT in France, businesses generally need to file a VAT return every month before the deadline.

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Quarterly VAT return: Businesses that declared less than €4,000 in VAT the previous year can apply for quarterly VAT declarations.

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Deadline to submit the French VAT return

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The deadline for submitting VAT returns in France depends on the filing frequency, which can be monthly, quarterly, or annual. Here are the general deadlines for each filing frequency:

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Monthly VAT Returns: The deadline for monthly VAT returns in France is typically between the 15th and 24th day of the month following the reporting period.

 

For example, the VAT return for the month of January would be due between February 15th and February 24th.

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Quarterly VAT Returns: If you are filing quarterly VAT returns, the deadlines are as follows:

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• Quarter 1 (January to March): Due between April 15th and April 24th.

• Quarter 2 (April to June): Due between July 15th and July 24th.

• Quarter 3 (July to September): Due between October 15th and October 24th.

• Quarter 4 (October to December): Due between January 15th and January 24th of the following year.

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Consequences of Late VAT Return Filing 

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Failure to file VAT returns on time can result in penalties for foreign non-established businesses operating in France. Late submissions may lead to financial sanctions, interest charges, and potential audits by the tax authorities. Additionally, delayed VAT return filings can impact the business's reputation and create legal implications.

 

VAT refunds in France

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VAT credits can be offset against any VAT liability that the business owes to the tax authorities. If the VAT credits exceed the VAT liability, the excess can be carried forward to future periods or refunded.

The refund application is typically submitted electronically through the dedicated online portal of the French tax authorities.

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• French reverse charge

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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.​

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

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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.

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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.

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

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When a supplier established outside of France offers services or sells goods with installation to a VAT-registered entity, the domestic reverse charge mechanism is applied. The VAT registration status of the supplier does not affect the application of this mechanism.

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• French consignment and call-off stock

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There are two stock regimes in France:

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French Consignment Stock: French consignment stock refers to a business arrangement where goods are stored by a supplier in France on behalf of a customer. In this arrangement, the supplier retains ownership of the goods until they are actually sold by the customer. The customer has the right to use or sell the goods from the consignment stock, but the VAT liability is triggered only when the goods are sold to a third party. Until the goods are sold, the supplier does not charge VAT to the customer, as the customer is not considered the owner of the goods.​

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Call-Off Stock: Call-off stock, also known as stock on call, refers to goods held by a supplier in France specifically for a known and identified customer. In this arrangement, the supplier transfers the goods to a designated location or warehouse in France at the customer's request. The customer has the right to take ownership and possession of the goods from the call-off stock whenever they need them. The transfer of ownership and the VAT liability occur when the customer takes possession of the goods from the stock. At that point, the customer becomes responsible for reporting and paying the VAT on the transaction.​

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Both consignment stock and call-off stock arrangements have specific VAT compliance requirements that businesses need to adhere to in order to ensure proper reporting and taxation of these transactions within the framework of EU VAT regulations, including the relevant rules and documentation for intra-community movements of goods.

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• French intrastat/ EC sales list

French Intrastat is a reporting system used to collect statistical data on the movement of goods between France and other EU member states. The purpose of Intrastat is to provide valuable information for statistical and economic analysis within the EU.

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Businesses are required to fill the French Intrastat return if they exceed specific thresholds for intra-EU trade. These thresholds are determined by the total value of goods dispatched (exports) and received (imports) between France and other EU countries within a calendar year. The thresholds may vary from year to year and are set by the French tax authorities.​

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• Threshold:

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• EUR 460,000 applying both to Arrivals and Dispatches flow

• When should French Intrastat be filed?

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For monthly filers, the deadline is typically around the 10th working day of the month following the reporting period. For example, if the reporting period is January, the deadline for filing the Intrastat declaration would be around the 10th working day of February

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Businesses registered for VAT in France must fill out the EC Sales List if they make supplies of goods or services to VAT-registered customers in other EU member states. The reporting obligation arises when the transaction is considered an intra-community supply, meaning the goods are transported from France to another EU member state or the services are deemed to be provided in another EU country.

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When should the French EC sales list be filed?

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France does not require a separate EC Sales List (ECSL) to be filed. Instead, France uses the DEB (Déclaration d'Échanges de Biens) system to report intra-EU transactions of goods. The DEB serves a similar purpose as the ECSL in other EU member states.

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If you are engaged in intra-EU transactions of goods involving France, you would need to file the DEB instead of the ECSL. The DEB should be submitted on a monthly basis, and the deadline for filing the DEB is generally the 10th working day of the month following the reporting period.