Greetings from Global VAT Compliance!
We are pleased to give you an overview of the new French Anti-Fraud Act 2020 which introduces important changes that you need to be aware of.
On 24 October 2018, the French Anti-Fraud Act was published in the Official Journal and was designed to strengthen the measures to fight against taxpayers’ failure to comply with their tax obligations.
This Act might require sellers to apply for a French VAT number, so do not hesitate to contact us if you have any consultation regarding VAT registration in France.
For further information, please contact us at firstname.lastname@example.org.
REPORTING REQUIREMENTS AND JOINT LIABILITY OF MARKETPLACES
Since 1 July 2019, electronic Marketplaces such as Amazon, eBay or others had been imposed certain obligations such as:
- Provide, for each transaction, honest, clear and transparent information on the tax and social obligations of sellers who carry out commercial transactions through the platform.
- Send sellers a statement of the operations carried out as well as various information concerning both the operations and the operator.
- Inform tax authorities and send them a document summarizing all this information for all users.
As of 1 of January 2020, the Act establishes a system of joint and several liability for online platforms for the payment of Value Added Tax (VAT) due by sellers and service providers who carry on their business through them.
Global VAT Compliance will provide all the necessary information, assistance and support with regards this new tax Act making sure you are fully VAT compliant in the French marketplace.
FRENCH ANTI-FRAUD ACT AND THE IMPLICATIONS FOR AMAZON SELLERS
The new rules establishes tax liability of electronic marketplace providers for the unpaid French VAT amounts as well as the obligation for marketplace to inform tax authorities about sellers activities.
How this affects you?
All Amazon sellers should upload their French or European VAT numbers as soon as possible on Seller Central to get their business ready for the French Anti-Fraud Act before January 31, 2020.
Amazon will have to provide the French Tax Authority with data regarding seller’s 2019 Amazon business by January 31, 2020 including their French and European VAT numbers. Therefore, the French Tax Authority may use your data to assess your compliance with French tax requirements.
What are the possible consequences?
Amazon may suspend your Amazon.fr seller account if the Tax Authority finds you are non-compliant.
What you should do to avoid being blocked?
Assess your need for a French VAT registration. Although the are different reason the be obliged to be VAT register in France, there are 2 common reasons that applies to sellers:
- Your company is established outside France but store inventory and fulfil orders from France (includes Imports to France); or
- You ship goods to French customers from another European country (not France), where you also store your inventory, and your total sales per calendar year to French customers exceeds €35,000.
You must also evaluate your need for VAT registration in other European countries, where the same reasons previously mentioned could apply.
- Storing inventory in a given country.
- Distance sales to other EU countries are above the local thresholds. Click here to see all thresholds for Amazon countries.
Global VAT Compliance can help you get your VAT number in France and all other required countries so you are fully VAT compliant and avoid being blocked from Amazon.fr