French marketplace VAT reporting update
- Jan 9, 2020 | Richard Asquith
Following the 1 January 2020 introduction in France of the obligation for marketplaces to report on the taxable supplies of their third-party sellers, the French tax office has clarified this week reporting requirements.
They have confirmed that for transactions after 1 January 2020, the marketplace must include in their disclosures on sellers using their platforms the gross value of transactions subject to VAT in France. This implies that the marketplace would have to determine if French VAT was in fact due. For example, if the goods where sent from another EU states and the seller was below the French distance selling rule of €35,000, the no French VAT would be due.
To overcome this problem, many French marketplaces insist that non-resident sellers are now French VAT registered even if they do not have to be under the distance selling threshold regime.
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