VAT France Guide

Read our guide and find out everything you need to know about VAT in France, from registration to filing, and more.

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%.

Type of VAT	VAT Rate	Applicable Goods/Services
Standard VAT	20%	All other taxable goods and services.
Reduced VAT rate (1)	10%	Сertain products and services including food, pharmaceutical products, pay/cable TV, and hotel accommodation.
Reduced VAT (2)	5.5%	Includes books, non-alcoholic beverages, medical equipment, and admission to sports events.
Super reduced VAT	2.1%	Includes newspapers and periodicals, television license fees, and admission to certain cultural events.
Zero rate VAT	0%	Medical and dental care.

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On July 1, 2021, country-specific distance selling thresholds were withdrawn and replaced with an EU-wide threshold of €10,000 that applies to all EU member countries.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.

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