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Introduction to VAT in France
As one of the basic countries of the European Union, France's VAT regulations are based on corresponding EU regulations. The current standard VAT rate in France is 20%.
The VAT rate for drugs, passenger transportation, cultural, sports, and entertainment activities, hotels, accommodation, and catering is 10%. The VAT rate for healthcare, food, e-books, and publications is 5.5%. The tax rate for newspapers is 2.1%.
As an EU member state, France is obliged to comply with and implement the EU's VAT regulations. In case of a conflict between EU regulations and local regulations, the EU regulations shall prevail.
French VAT Law
France's VAT law is subordinate to the General Principles of Tax Law. Its specific implementation is supervised by the French General Administration of Customs and Indirect Taxation.
French VAT registration
In the 1990s, Europe began implementing a unified trade market system, which allows foreign enterprises to participate in commodity transactions without local entities. It is called non-resident VAT related transaction. France does not set a threshold for the taxation of VAT on this type of trade. Before transaction, companies need to apply for and obtain a VAT registration number, otherwise the transaction cannot be completed.
France has strict legal regulations on VAT registration. The circumstances where VAT registration in France is required include:
Import items to France
Organize on-site activities, meetings, etc. in France
Spare goods stored in French warehouses for more than three months for resale
Provide more than 12 months of supply and installation services
Sell goods from France to other EU countries
Remote sales of goods to individual consumers, such as online retail
In September 2006, France tightened up its VAT registration regulations, and prohibited foreign enterprises from independently applying for VAT registration numbers on a large scale, specifically those trade with consumers holding French VAT registration numbers. In this case, a reverse charging model can be adopted.
Generally speaking, VAT registration in France takes about 4 weeks, which may vary depending on the situation.
French VAT financial agent
In France, EU companies are no longer required to appoint professional tax agencies to represent them in VAT matters. However, non-EU enterprises still need to appoint specialized financial agents. Since 2013, certain non-EU countries have signed mutual assistance agreements with France, and French companies are also allowed to dispense with financial agents.
French VAT payment
In France, trade records have corresponding legal norms, which includes:
French Receipt Requirements
Foreign Exchange Statements and Translation
Credit notes and change records
French VAT rate
The current standard VAT rate in France is 20%. The VAT rate for drugs, passenger transportation, cultural, sports, and entertainment activities, hotels, accommodation, and catering is 10%. The VAT rate for healthcare, food, e-books, and publications is 5.5%. The VAT rate for newspapers is 2.1%.
French VAT declaration
Companies with a French VAT registration number must regularly submit transaction and cost information for all goods subject to taxation. In France, VAT declarations are generally submitted on a monthly basis.
The deadline for VAT declaration is the 19th of the following month after the declaration period.
Reporting transaction data: Intrastat and EC sales list
After the declaration, companies may be required to provide additional data and information. In France, the two statistical systems are collectively known as ‘Déclaration d'Echange de Biens’ (DEB). Companies are required to provide all required information within 10 days after the end of each month.
French VAT refund
If a foreign company sells goods in France but does not meet the standards for applying for a VAT registration number, or indirectly purchases products or services subject to taxation, the corresponding VAT is refundable.
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