Following the relaxation of the French VAT répondant fiscal requirement earlier this year, the French VAT authorities have further clarified the rules on the obligations on foreign traders to register for VAT.
If a non-resident French company is importing goods in Europe via Francefor the first time, and the goods are then sold to a local, French VAT registered company, then the obligation to account for VAT falls onto the purchaser. This process of self assessment or reverse charge simplifies the compliance obligations for the importer into France.
If the supplier is bringing the goods in from another EU country and then sold in France, then the company would be required to French VAT register since there is an intra-community supply. However, the French tax authorities have now lifted this obligation from the supplier. Additionally, the have removed the obligation to report the intra-community supply through a French Intrastat DEB declaration. The supplier therefore does not have to VAT register in France.
