French VAT reverse charge
France uses the VAT reverse charge regularly
To help reduce the VAT compliance burden for EU companies trading in France (and all EU member countries) a VAT compliance simplification mechanism, the ‘reverse charge’, is used. This allows the recording of certain French VAT transactions to be pushed to the recipient of the goods or services. This then means the foreign supplier has no need VAT register in France.
When is the French VAT reverse charge used?
The reverse charge mechanism is applied in the following circumstances:
- Importing and selling goods to French companies with a local VAT registration
- The supply of services to a French VAT registered business (2010 VAT package).
- Supply and install contracts.
- Supply of certain types of power.
- Other various minor goods.
What is the tax point for the French reverse charge?
The tax point (when the VAT is due) for the reverse charge is the end of the month following the month of supply. However, if the vendor raised an invoice prior to the supply, then it is that date which should be used.
Need help with your French VAT compliance?
Researching French VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.
Latest French news
Oct 8, 2019
The draft French budget, published on 26 September, for 2020 has proposed a range of measure to fight e-commerce VAT fraud. The 2020 measures impose obligations on fulfilment houses and facilitating
Sep 1, 2019
France has proposed expanding the marketplace third-party seller reporting requirements. This would include determining sellers' foreign VAT registration status and obligation to charge French VAT
January 25, 2019
The European Commission (EC) has proposed switching from unanimous to majority voting on EU VAT and other tax policies. The aim is to progress fiscal reforms which face immovable opposition from just a limited number of member states.
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