The French tax authorities release a VAT package on the implementation of EU Directives on e-commerce transactions

The administrative doctrine on VAT rules implementing EU Directives on e-Commerce transactions was published by France’s General Directorate of Public Finance (DGFP) on 22 December 2021. In particular, the assessment provided clarifications on the 10,000 EUR threshold of Article 259D of the General Tax Code (CGI) on which traders are authorized to submit the VAT for transactions concerning in the country of dispatch. 

Key highlights of the VAT package: 

• How to determine the place of supply for operators with intra-community sales below the 10,000 EUR threshold 
• The scope and application of VAT rules for distance selling of goods 

• The VAT base and place of supply for tangible movable property 
• Application of standard VAT rate (20%) to products that do not fall under either a reduced or special tax rate 
• The list of transactions that qualify for VAT deductions 
• VAT registration, accounting, and invoicing obligations. 

Source: impots.gouv.fr