VATLive > Blog > France > France imposes full marketplace liabilities 2021

France imposes full marketplace liabilities 2021

  • Oct 13, 2020 | Richard Asquith

As EU member states roll out the implementing legislation for EU VAT ecommerce package for July 2021, some anomalies are emerging on the rules.

France has indicated that it may make facilitating marketplaces the VAT deemed supplier on all import transactions. The EU intention is only to require marketplaces to take on the VAT obligation on imported sales of its third-party sellers if the consignment intrinsic value does not exceeds €150. The difference is contained within art. 293 of the French General Tax Code (CGI), which makes a facilitating marketplace liable for the VAT in all cases.

The policy stems for the European Commission opening up the right for Member State to decide freely on the person liable to pay the import VAT (either the customer or the supplier or the electronic interface – Article 201 of the VAT Directive). However, France appears to be overlooking the ≤€150 consignment limit.

This follows news that the German ecommerce rules may still require EU distance sellers to remain VAT registered in Germany even if they use the single OSS return.

The EU has since published the package revised Guidance Notes which may result in a clarification. 

The EU VAT ecommerce package introduces the new One-Stop-Shop single VAT return for distance sellers. And ends the distance selling thresholds. It also makes sellers and facilitating marketplaces liable for import VAT not exceeding €150. And introduces the new IOSS return to declare the sales VAT on these sales.


Need a fiscal representative in France?

Non-EU businesses selling in France will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.

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. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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