France to make Electronic Marketplaces to pay sellers’ VAT

May 31, 2019 | VAT Updates

France wants to reduce the VAT Gap which was more than EUR 20 billion in 2016(1) by implementing a series of measures to fight VAT Fraud and electronic marketplaces such as Amazon or Alibaba are being aimed by the government.

According to LesEchos(2), the main change the new directive that The Minister of Public Action and Accounts, Gérald Darmanin, would introduce is making electronic marketplaces collect and pay VAT in behalf of sellers.

Besides, it would also remove the Low Value Consignment Relief (LVCR) which is currently set in EUR 22 for goods entering as parcels to the French territory from non-EU countries. Going even further, Custom duties to goods under EUR150 would now be applicable.

Some other measures include tracing logistics flows of goods and implementing electronic invoicing.

Global VAT Compliance will keep you updated as this news develops.