E-Commerce & B2C Services in France
For companies based outside the EU that bring in and/or market their products in France, including via online shopping platforms, it is mandatory to register for French VAT and, when necessary, designate a fiscal representative.
From 1 July 2021, new regulations have been implemented regarding the taxation of distance sales of goods from another EU Member State or from third countries to non-VAT registered individuals. The majority of these transactions are now taxed in the Member State where the consumer is based.
Read more about E-Commerce & B2C services in France in our comprehensive guide.
OSS/ IOSS
Starting July 1, 2021, new rules have come into effect concerning the taxation of remote sales of goods from another EU Member State or from outside the EU to individuals who are not registered for VAT. Now, most of these transactions are taxed in the Member State where the consumer resides.
To alleviate the declaration and payment duties for businesses, an optional system known as the One-Stop-Shop – Import One-Stop-Shop (OSS-IOSS) has been introduced within the EU. Companies choosing this system will not need to register for VAT in every Member State where they have consumers. Instead, they can declare and pay VAT in just one Member State through this unified system.
The OSS is applicable to the provision of services to non-VAT registered individuals in a Member State where the business is not established, distance sales of intra-EU goods, and sales of goods from third countries valued at EUR 150 or less and located within the EU to non-VAT registered individuals in the EU.
GVC can help you with your OSS/IOSS requirements contact us by clicking here.
Selling in France?
B2C Services in France
In general, taxable supplies of services are defined for French VAT purposes as:
- Transactions for valuable consideration other than the supply of goods carried out by a taxable person who acting as such.
- Specific Self-supplies of certain services
Time of Supply
The moment services are delivered determines the taxable event, as defined in Article 269 of the General Tax Code.
When applying the reverse charge method, the tax obligation arises either when the service is rendered or, if payments are made in advance, when those payments are collected.
According to Article 259 of the French General Tax Code, the location of the “B2B” service recipient determines where the service is considered provided, irrespective of the service provider’s location. B2B services are subject to French VAT if the receiving entity is a business based in France. In this scenario, VAT is levied using the reverse charge procedure.
Download the French VAT Guide
Digital Services in France
Since July 26th, 2019, there has been a tax on certain digital services provided by large businesses in the digital sector (hereinafter, the “Digital Services Tax” or “DST”).
The Digital Services Tax covers the following:
- The provision of advertising targeting services based on internet user’s data, whether it is personal data. These services include, in particular, services targeting advertising messages based on search engine queries.
- The provision of a service for bringing Internet users together, whether this service enables these Internet users to carry out transactions directly with each other.
- The sale of data collected online for the purpose of advertising targeting.
Companies are only subject to this tax if their revenues from these services surpass EUR 750 million globally, with at least EUR 25 million attributed to France, or if they are part of a group meeting the same criteria.
The tax is determined by taking 3% of the funds (excluding VAT) received for taxable digital services (“taxable services”) that are linked to France (“French digital presence”).
There are two main categories of services that fall under the DST, and these are further divided into two subsets of services:
Digital intermediation services
A digital intermediation service is one in which a digital interface is provided via electronic communications and allows users to communicate and engage with one another. Marketplaces and matchmaking services fall into this category.
Targeted advertising services
Advertisers can use targeted advertising services to show advertising messages on a digital interface depending on data acquired from users. This category encompasses placement services as well as data transfer services.
The following taxpayers can opt for a centralized filing and payment for businesses belonging to a group within the meaning of the Commercial Code:
- Taxpayers who are not subject to the simplified VAT regime.
- Companies which are members of a group with other companies which are liable for the DST.
The reference taxpayer will carry out filing and payment procedures for all members of the group. DST group option differs from consolidated VAT payment.
Global VAT Compliance is up to date with all new rules & regulations and provides VAT/GST solutions to companies offering digital services worldwide. View all our solutions by clicking here.
Last Updated: 30/10/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
