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Key takeaways
- France VAT rates: The standard VAT rate is 20%, with reduced rates of 10%, 5.5%, and a super-reduced 2.1% rate, plus a 0% rate for certain healthcare services.
- Registration threshold: Resident businesses must register once turnover exceeds €85,800 for goods or €34,400 for services, while non-EU companies must appoint a fiscal representative.
- Filing & penalties: VAT returns are filed monthly, quarterly, or annually, and late filings or payments can trigger fines of up to 40%–80% of VAT due plus monthly interest.
Whether you’re an EU or non-EU business, any plan to expand into France is likely to require registering for VAT. With this in mind, we’ve put together a handy guide to help you better understand how VAT in France works.
What is the French VAT rate?
VAT (Value Added Tax) in France is known as TVA (Taxe sur la valeur ajoutée). There is a standard French VAT rate of 20%, two reduced rates of 10% and 5.5%, and a super reduced rate of 2.1%.
Registering for VAT in France
For resident businesses, the threshold for VAT registration in France is €85,800 for the supply of goods and €34,400 for the supply of services. You must register for VAT if your turnover exceeds these thresholds.
On July 1, 2021, country-specific distance selling thresholds were withdrawn and replaced with an EU-wide threshold of €10,000 that applies to all EU member countries. This means that, if your business’s annual turnover for cross-border trade with an EU country exceeds €10,000, you’re liable for VAT there. You’re also liable if you store products in France or are participating in an FBA program (Fulfilled-by-Amazon) that includes France.
To register and obtain a French VAT number, an application should be made at the French tax office, the Service des Impôts des Entreprises (SIE). The application is free of charge but must be made in French. The application typically takes six to eight weeks.
Fiscal representative in France
Non-EU businesses selling in France are required to appoint a fiscal representative, who will be jointly liable for the French VAT.
French VAT return filing and penalties
French VAT returns should be electronically filed monthly for businesses that have an annual turnover of over €818,000 (for goods) or €247,000 (for services). Filing frequency can be yearly if the annual turnover is below these thresholds or, alternatively, can be quarterly if the French VAT due is less than €4,000 each year.
Compulsory annual VAT returns are not applicable in France.
French VAT filings for a non-resident company are due on the 19th of the month following the relevant period.
The penalty for late filing is 10% of the VAT due (if filed within 30 days of a reminder being sent) plus 0.2% interest per month. If the French VAT return is filed after the 30-day period, the fine will be 40% of the VAT due, and 80% for failure to file. Late payment will incur a penalty of 5% plus 0.2% interest for each month of delay.
French Intrastat declarations
Both resident and non-resident businesses in France are required to submit Intrastat returns. Intrastat returns need to be filed by the 10th of the month, with potential late filing penalties of up to €1500. The annual threshold for filing an Intrastat return is €460,000 (arrivals and dispatches).
Reverse charge in France
The reverse charge mechanism in France applies to non-resident suppliers and certain domestic goods and services. The customer calculates and declares both the input VAT (VAT on purchases) and output VAT (VAT on sales) in their own VAT return, effectively neutralizing the VAT liability for the supplier. Under these circumstances, there is no need for the foreign supplier to be registered for VAT.
Frequently asked questions
What is the VAT rate in France?
France’s standard VAT rate is 20%, with reduced rates of 10%, 5.5%, and a super-reduced rate of 2.1%. A 0% rate applies to medical and dental care.
When do I need to register for VAT in France?
Resident businesses must register once turnover exceeds €85,800 for goods or €34,400 for services. The EU-wide distance selling threshold is €10,000. Registration is also required if you store goods in France or use Amazon FBA.
How do I register for VAT in France?
Businesses must apply through the Service des Impôts des Entreprises (SIE). Applications must be submitted in French and typically take 6–8 weeks to process before a French VAT number is issued.
Do foreign businesses need a fiscal representative in France?
Yes. Non-EU businesses are required to appoint a fiscal representative, who shares joint liability for VAT compliance and payments in France.
How often must VAT returns be filed in France?
- Monthly – turnover above €818,000 (goods) or €247,000 (services)
- Quarterly – if annual VAT due is below €4,000
- Annually – for smaller businesses
Returns must be filed electronically by the 19th of the following month.
Are Intrastat declarations required in France?
Yes. Intrastat filings are due if annual EU trade exceeds €460,000 (arrivals or dispatches). Declarations must be submitted by the 10th of the following month. Late submissions can result in fines of up to €1,500.
