Looking to obtain a French VAT number for your e-commerce operations in the EU? SimpleVAT offers French VAT registration services tailored to foreign companies doing business in France.
VAT Guide
VAT in France is called "Taxe sur la Valeur Ajoutée" (TVA) and the local tax authority is the Direction Générale des Finances Publiques (DGFiP). The standard VAT rate in France is 20%.
As a foreign company conducting taxable activities in France, you have to register for a French VAT number.
EU companies can register directly with DGFiP, so long as they know how to fill out their application and can navigate doing so in French.
For non-EU companies, a fiscal representative needs to be appointed, to be jointly and severally liable for your VAT compliance.
SimpleVAT helps both EU and non-EU companies get registered for a French VAT number and can also handle filing your monthly VAT returns in France.
Who is VAT liable in France
For e-commerce businesses operating in Europe, registering for VAT in France is necessary if you have stock stored there. Here are the primary situations that require VAT registration in France for non-French companies:
Participating in Amazon's FBA programs and storing stock in Spanish warehouses
Storing stock in a warehouse that you have rented to keep your products and fulfill orders.
Storing stock in a French warehouse rented from a 3PL fulfillment provider triggers the obligation to register for VAT in France. It's advisable to complete your registration before sending your stock to avoid customs clearance issues and import VAT reclaims.
For sellers utilizing Amazon FBA, it's important to understand the different FBA programs and their VAT implications. Amazon's FBA programs include:
Choose one country for stock storage, requiring registration in that country (e.g., Spain).
Choose multiple countries for stock storage, necessitating immediate VAT registration in the selected countries.
Distribute stock across up to 8 countries, including Spain. Register for VAT in all 8 Amazon FBA Pan European countries.
Common questions answered
The standard VAT rate in France is 20%. However, there are reduced VAT rates applicable to certain goods and services. The reduced VAT rates in France are:
These reduced rates are applied to specific categories of goods and services, such as certain foodstuffs, books, medical products for disabled persons, and some pharmaceutical products.
For a more detailed breakdown of all VAT rates and categories of goods, please visit our EU VAT rates page.
Before 2021, a distance selling threshold determined VAT registration obligations in France. For foreign businesses, this threshold was €35,000 in annual turnover. However, in 2021, this system was replaced by an EU-wide threshold of €10,000 for combined EU sales, irrespective of the country. If your intra-community sales exceed €10,000, you must pay VAT in each relevant country. Until this threshold is reached, you pay VAT for all sales, including intra-community ones, in your home country.
To streamline VAT collection for intra-community sales, the European Union introduced the One Stop Shop (OSS) scheme. Under OSS, you can report your intra-community sales in your home country and pay VAT in one consolidated submission. Your home country then distributes the appropriate VAT amounts to other EU countries based on your sales report.
Any business with a VAT number in an EU country can register for the OSS scheme and settle their intra-community VAT by submitting monthly or quarterly OSS declarations.
In international e-commerce and cross-border transactions involving the EU, sellers must inform clients about additional costs associated with imports unless they register for the IOSS scheme.
When selling to customers in France from a non-EU country, customers are responsible for paying import VAT and applicable duties. Typically, these fees are settled with the carrier (e.g., La Poste or DHL), which handles customs declarations and charges an additional fee for the service.
Sellers with significant sales volumes to France or other EU countries can benefit from registering for the IOSS. This allows them to streamline the purchasing experience for customers, avoiding additional fees for customs services and offering prices inclusive of VAT.
It's worth noting that the IOSS scheme is not limited to non-EU companies; it is open to all businesses selling goods imported into the EU with a value not exceeding €150.
If your business is based outside the EU or EEA and you are not established in France for VAT purposes, you will be required to appoint a tax representative in France. The tax representative will work on your behalf to ensure adherence to VAT regulations in France.
For businesses based in the following countries, appointing a fiscal representative is not required: Antigua and Barbuda, Armenia, Australia, Bosnia and Herzegovina, Cape Verde, Cook Islands, Dominica, Ecuador, Grenada, Iceland, India, Jamaica, Japan, Kenya, Kuwait, Nauru, New Zealand, Niue, North Macedonia, Norway, Pakistan, South Africa, South Korea, Turkey, United Kingdom of Great Britain and Northern Ireland, Vanuatu.
You can get more information about the exceptions from the fiscal representative requirement here.
From 2023 the French authorities introduced a new requirement for fiscal representation, which states that to represent a client, the fiscal representative must obtain accreditation from the tax office.
Obtaining a French VAT number as a foreign company involves various factors, including the complexity of the application and the efficiency of local tax authorities. Typically, this process takes between 6 to 8 weeks from the date of application submission. This period might be longer if there are any complications with the application or if additional documentation is needed. Collaborating with experts or service providers such as SimpleVAT can simplify the process and ensure a timely registration.
Let SimpleVAT manage the complexities of VAT registration, filing, and OSS/IOSS registration for your e-commerce business in France. Our expert team ensures compliance with French tax regulations, allowing you to focus on scaling your business. Contact us today to discover more and embark on your journey!
