VAT applicable to European trade
Verified 05 October 2022 - Directorate for Legal and Administrative Information (Prime Minister)
The VAT assessment of trade between 2 countries of the European Union depends on the nature of the transaction and the identity of the customer. The rules are different for an exchange of goods and for the provision of services. For sales, it is also necessary to find out whether the customer is an individual or a professional.
Exchange of goods
When you buy or sell a property within theEuropean Union, you must declare the VAT applicable to this property.
A trader established in France, liable or not liable (in other words, subject to payment or not) of French VAT who buys goods in another country of the European Union makes a intra-Community acquisition (ACI).
The person who acquires the goods must pay VAT.
The rules differ depending on the type of operation realized:
- If the delivery of the goods is located in France, then it is the person who makes the delivery who has to pay VAT
- In other situations, it's your turn to pay VAT
Trader liable to pay VAT
When you are the person liable for VAT (i.e. subject to payment), you must collect VAT and indicate this on your VAT return.
If you have the right to deduct on your acquisition, you can deduct the corresponding VAT. So your statement will include VAT collected and deductible VAT.
Have an Intra-Community VAT Number
You must have a intra-Community VAT number valid French. This number must always be displayed on your business documents and VAT returns.
As a VAT payer, the tax authority has given you an intra-Community VAT number from the moment you set up your company.
Report VAT
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You are subject to the normal effective tax regime
You must specify the basis HT: titleContent goods you purchased on line B2 Intra-Community acquisitions on your monthly or quarterly sales report #3310-CA3.
You must also enter the VAT base and amount on line 08, 09, 9B or other depending on the VAT rate.
You must add the amount of VAT collected on ACIs to line 17 and the amount of VAT deductible on line 23.
You are subject to the simplified effective tax system
You must enter the VAT amount and basis on line AB of your annual sales tax return #3317-CA12.
You must also indicate on line 20 Invoice Deductions or line 23 Deductible VAT on fixed assets, the amount of VAT deductible on acquisitions.
Business not liable for VAT
If you are a professional covered by the exemption from VAT or non-taxable, you are subject to French VAT but not liable for it.
On the other hand, you may have to pay VAT on your intra-Community acquisitions.
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The annual amount of your intra-Community acquisitions is less than €10,000
The seller located in another EU Member State invoice you for VAT of his country.
You cannot not get refunded.
However, you can opt for French VAT.
You must first obtain a intra-Community VAT number. In this case, you have to file VAT returns to reverse charge the tax due on your acquisitions. However, you do not have the right to deduct.
The annual amount of your intra-Community acquisitions is more than €10,000
You must collect French VAT on the amount of your purchases. For this, it is necessary to have a intra-Community VAT number.
You must specify the basis HT: titleContent of the goods concerned on line B2Intra-Community acquisitions on your monthly or quarterly sales report #3310-CA3. These declarations must be filed only for the periods during which you have made intra-Community acquisitions taxable for VAT purposes in France.
You must also enter the VAT base and amount on line 08, 09, 9B or other depending on the VAT rate.
You must add the amount of VAT collected on ACIs to line 17.
Taxes: Go to your business area
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
The buyer is a company subject to VAT
If you sell goods in another EU country and the buyer is subject to VAT in his or her country, then you make intra-Community supplies (ICA). This applies to you if you are a trader located in France and subject to payment of French VAT.
French VAT shall not apply to intra-Community supplies where all of the following conditions have been completed:
- The sale is paying
- You are subject to the VAT system
- Your customer is subject to the VAT in his own country
- The good is shipped or transported outside France
To qualify for this exemption, you must obtain the VAT identification number from your customer. The invoice you issue must include your VAT registration number, your customer's VAT registration number and the endorsement VAT exemption, Article 262b I of the General Tax Code.
If one of the conditions is not respected, the sale is subject to French VAT.
You must declare all intra-Community supplies, whether or not subject to VAT, your statement #3310-CA3(normal effective taxation system) or your statement #3517-CA12.
The purchaser is an individual or a trader who is not liable for VAT
When you sell a property in another country of the EU, we are talking about distance selling if the buyer is an individual or a company not subject to VAT.
You are subject to payment of VAT
Distance selling of less than €10,000 per year
The sale is subject to French VAT.
FYI
intra-Community supplies of new means of transport or goods supplied after assembly or installation are not distance sales.
Distance selling of an annual amount exceeding 10,000€
The sale is subject to the VAT of the country in which your customer is located.
FYI
intra-Community supplies of new means of transport or goods supplied after assembly or installation are not distance sales.
You are not subject to VAT
Distance sale of less than €10,000
The sale is not subject to VAT.
FYI
intra-Community supplies of new means of transport or goods supplied after assembly or installation are not distance sales.
Distance selling of an annual amount exceeding 10,000€
The sale is subject to the VAT of the country in which your customer is located.
FYI
intra-Community supplies of new means of transport or goods supplied after assembly or installation are not distance sales.
You can declare VAT on your distance sales transactions in two different ways. You can use the one-stop shop for VAT or register for VAT in each of the Member States or you carry out taxable transactions. You have to declare and pay the corresponding VAT.
VAT one-stop shop
The aim of the VAT one-stop shop (EU scheme) is to bring together one place all VAT returns on your European transactions and not to register for VAT in the various Member States.
If you decide to declare your VAT via the one-stop shop, you will then have to make all your VAT declarations related to transactions covered by the one-stop shop (sale of goods, supply of services...).
If the VAT of the Member States with which you carry out distance sales transactions is applied, you can send to each Member State concerned your VAT refund requests.
You must file your VAT return by one of the following deadlines:
- For transactions that have taken place between 1er January and March 31, you must declare the VAT of these transactions before 30 April
- For transactions that have taken place between 1er April and June 30, you must declare the VAT of these transactions before 31 july
- For transactions that have taken place between 1er July and September 30, you must declare the VAT of these transactions before 31 october
- For transactions that have taken place between 1er October and December 31, you must declare the VAT of these transactions before 31 January of the following year
Each month you must complete a VAT summary by 10e working day of the month following the month in which the deliveries took place.
The declaration is to be completed on your personal space on site impots.gouv.fr:
Provision of services
When you sell or purchase a service within the European Union, you must declare the VAT applicable to this supply of services.
You will have to report VAT differently depending on whether the supply is subject to VAT or not.
Business Customer
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General case
A supply of services made in another country of the European Union is not subject to French VAT, except in exceptional cases.
You must inquire with the tax administration of the State where VAT is applicable to find out the arrangements applied:
- When the State has a reverse charge system, then you have to charge VAT and it is your customer who will have to pay VAT.
- When the state where VAT is applicable requires you to register, then you have to charge VAT and remit it to the state concerned
You must indicate on your invoices that the VAT has been reverse charged or mention the VAT of the country whose VAT is applied.
You are subject to the normal effective tax regime
You must indicate the services you have provided on line A2 of the heading Other taxable transactions on your monthly or quarterly sales report #3310-CA3:
Taxes: Go to your business area
You must submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
You are subject to the simplified effective tax system
You must indicate the services you have provided on line 13 of the heading Other taxable transactions on your annual sales statement #3517-CA12:
Taxes: Go to your business area
You must submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
You are subject to the VAT exemption system
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
You must report VAT on line A2 Other taxable transactions on your monthly or quarterly sales report #3310-CA3:
Taxes: Go to your business area
You must also submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
Rental of short-term means of transport available in France
These are the following types of rentals:
- For maritime transport: 90 days maximum
- For other means of transport: continuous rental of 30 days max
The service is subject to the French VAT.
You are subject to the normal effective tax regime
You must specify the basis HT: titleContent the services you have provided on line A1 Sales, services on your monthly or quarterly sales report #3310-CA3. You must also specify the basis HT: titleContent and the VAT amount on line 08, 09, 9B or 14, depending on the VAT rate.
Taxes: Go to your business area
You must submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
You are subject to the simplified effective tax system
You must specify the basis HT: titleContent and the amount of VAT on the supplies of services you have made on line 5A, 06, 6C or 09, depending on the VAT rate on your annual turnover statement #3517-CA12 :
Taxes: Go to your business area
You must submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
Provision of travel agency services
Where the travel agent has its business registered office in France or where the services are sold from a fixed establishment situated in France, the applicable VAT is French VAT.
You are subject to the normal effective tax regime
You must specify the basis HT: titleContentthe services you have provided on line A1 Sales, services on your monthly or quarterly sales report #3310-CA3. You must also specify the basis HT: titleContent and the VAT amount on line 08, 09, 9B or 14, depending on the VAT rate.
Taxes: Go to your business area
You must submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
You are subject to the simplified effective tax system
You must specify the basis HT: titleContent and the amount of VAT on the supplies of services you have made on line 5A, 06, 6C or 09, depending on the VAT rate on your annual turnover statement #3517-CA12 :
Taxes: Go to your business area
You must submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
Access to events (ticketing)
These supplies of services are taxed at French VAT once the event (sporting event, show, exhibition...) takes place in France.
You are subject to the normal effective tax regime
You must specify the basis HT: titleContentthe services you have provided on line A1 Sales, services on your monthly or quarterly sales report #3310-CA3. You must also specify the basis HT: titleContent and the VAT amount on line 08, 09, 9B or 14, depending on the VAT rate.
Taxes: Go to your business area
You must submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
You are subject to the simplified effective tax system
You must specify the basis HT: titleContent and the amount of VAT on the supplies of services you have made on line 5A, 06, 6C or 09, depending on the VAT rate on your annual turnover statement #3517-CA12 :
Taxes: Go to your business area
You must submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
Services related to a building
Since the building is located in France, the related supply of services is subject to French VAT.
These will be real estate works or real estate agents' services, for example.
You are subject to the normal effective tax regime
You must specify the basis HT: titleContentthe services you have provided on line A1 Sales, services on your monthly or quarterly sales report #3310-CA3. You must also specify the basis HT: titleContent and the VAT amount on line 08, 09, 9B or 14, depending on the VAT rate.
Taxes: Go to your business area
You must submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
You are subject to the simplified effective tax system
You must specify the basis HT: titleContent and the amount of VAT on the supplies of services you have made on line 5A, 06, 6C or 09, depending on the VAT rate on your annual turnover statement #3517-CA12 :
Taxes: Go to your business area
You must submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
Private Customer
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General case
The service is invoiced with VAT. The individual customer pays the VAT at the French rate.
You are liable for VAT
Services of less than €10,000 per year
The sale is subject to French VAT.
Service provision of an annual amount exceeding €10,000
The sale is subject to VAT of the country in which your customer is located.
You can declare VAT on your distance sales transactions in 2 different ways.
You can use the one-stop shop for VAT or register for VAT in each of the Member States where you carry out taxable transactions. You have to declare and pay the corresponding VAT.
VAT one-stop shop
The aim of the VAT one-stop shop (EU scheme) is to bring together one place all VAT returns on your European transactions and not to register for VAT in the various Member States.
If you decide to declare your VAT via the one-stop shop, you will then have to make all your VAT declarations related to transactions covered by the one-stop shop (sale of goods, supply of services...).
If the VAT of the Member States with which you carry out distance sales transactions is applied, you can send to each Member State concerned your VAT refund requests.
You must file your VAT return by one of the following deadlines:
- For transactions that have taken place between 1er January and March 31, you must declare the VAT of these transactions before 30 April
- For transactions that have taken place between 1er April and June 30, you must declare the VAT of these transactions before 31 july
- For transactions that have taken place between 1er July and September 30, you must declare the VAT of these transactions before 31 october
- For transactions that have taken place between 1er October and December 31, you must declare the VAT of these transactions before 31 January of the following year
You are not subject to VAT
Distance sale of less than €10,000
The sale is not subject to VAT.
Distance selling of an annual amount exceeding 10,000€
The sale is subject to VAT of the country in which your customer is located.
You can declare VAT on your distance sales transactions in 2 different ways.
You can use the one-stop shop for VAT or register for VAT in each of the Member States where you carry out taxable transactions. You have to declare and pay the corresponding VAT.
VAT one-stop shop
The aim of the VAT one-stop shop (EU scheme) is to bring together one place all VAT returns on your European transactions and not to register for VAT in the various Member States.
If you decide to declare your VAT via the one-stop shop, you will then have to make all your VAT declarations related to transactions covered by the one-stop shop (sale of goods, supply of services...).
If the VAT of the Member States with which you carry out distance sales transactions is applied, you will be able to send to each Member State concerned your VAT refund request.
You must file your VAT return by one of the following deadlines:
- For transactions that have taken place between 1er January and March 31, you must declare the VAT of these transactions before 30 April
- For transactions that have taken place between 1er April and June 30, you must declare the VAT of these transactions before 31 july
- For transactions that have taken place between 1er July and September 30, you must declare the VAT of these transactions before 31 october
- For transactions that have taken place between 1er October and December 31, you must declare the VAT of these transactions before 31 January of the following year
Rental of short-term means of transport available in France
These are the following types of rentals:
- For maritime transport: 90 days maximum
- For other means of transport: continuous rental of 30 days max
Service delivery is subject to French VAT.
You are subject to the normal effective tax regime
You must specify the basis HT: titleContentthe services you have provided on line A1 Sales, services on your monthly or quarterly sales report #3310-CA3. You must also specify the basis HT: titleContent and the VAT amount on line 08, 09, 9B or 14, depending on the VAT rate.
Taxes: Go to your business area
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
You must also submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
You are subject to the simplified effective tax system
You must specify the basis HT: titleContent and the amount of VAT on the supplies of services you have made on line 5A, 06, 6C or 09, depending on the VAT rate on your annual turnover statement #3517-CA12 :
Taxes: Go to your business area
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
You must also submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
Provision of travel agency services
Where the travel agent has its business headquarters in France or where the services are sold from a permanent establishment situated in France, the applicable VAT is French VAT.
You are subject to the normal effective tax regime
You must specify the basis HT: titleContentthe services you have provided on line A1 Sales, services on your monthly or quarterly sales report #3310-CA3. You must also specify the basis HT: titleContent and the VAT amount on line 08, 09, 9B or 14, depending on the VAT rate.
Taxes: Go to your business area
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
You must also submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
You are subject to the simplified effective tax system
You must specify the basis HT: titleContent and the amount of VAT on the supplies of services you have made on line 5A, 06, 6C or 09, depending on the VAT rate on your annual turnover statement #3517-CA12 :
Taxes: Go to your business area
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
You must also submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
Access to events (ticketing)
These supplies of services are taxed at French VAT when the event (sporting event, show, exhibition, etc.) takes place in France.
You are subject to the normal effective tax regime
You must specify the basis HT: titleContentthe services you have provided on line A1 Sales, services on your monthly or quarterly sales report #3310-CA3. You must also specify the basis HT: titleContent and the VAT amount on line 08, 09, 9B or 14, depending on the VAT rate.
Taxes: Go to your business area
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
You must also submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
You are subject to the simplified effective tax system
You must specify the basis HT: titleContent and the amount of VAT on the supplies of services you have made on line 5A, 06, 6C or 09, depending on the VAT rate on your annual turnover statement #3517-CA12 :
Taxes: Go to your business area
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
You must also submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
Services related to a building
Where the immovable is situated in France, the provision of services connected therewith shall be imposed on the French VAT. These will be real estate works or real estate agents' services, for example.
You are subject to the normal effective tax regime
You must specify the basis HT: titleContentthe services you have provided on line A1 Sales, services on your monthly or quarterly sales report #3310-CA3. You must also specify the basis HT: titleContent and the VAT amount on line 08, 09, 9B or 14, depending on the VAT rate.
Taxes: Go to your business area
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
You must also submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
You are subject to the simplified effective tax system
You must specify the basis HT: titleContent and the amount of VAT on the supplies of services you have made on line 5A, 06, 6C or 09, depending on the VAT rate on your annual turnover statement #3517-CA12 :
Taxes: Go to your business area
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
You must also submit a European Service Declaration (DES) within 10 days of the following month the period during which the service was performed or the period during which a deposit was paid.
The services you purchase are taxable at the French VAT, except in exceptional circumstances.
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You are subject to the normal effective tax regime
You must indicate the services you have provided on line A3 of the heading Purchases of intra-Community services on your monthly or quarterly sales report #3310-CA3. You must also enter the amount of deductible VAT on line 20 of your return.
You are subject to the simplified effective tax system
You must indicate the services you have performed on line AC of the heading Purchase of supplies of services from a taxable person not established in Franceon your annual sales statement #3517-CA12.
You also have to report the deductible VAT on line 20 or 23 of your turnover tax return.
You are not liable for VAT
To do European exchanges, you must ask the tax department of the companies on which you depend, a intra-Community VAT number for these operations (unless you already have one).
Who shall I contact
You are subject to the VAT exemption scheme, i.e. you are subject to VAT but not liable for it (i.e. not subject to payment).
However, you are liable for VAT on intra-Community supplies of services.
You collect French VAT on the amount of your purchases. You must report VAT on your monthly or quarterly sales tax return #3310-CA3 :
Taxes: Go to your business area
You must tell your business tax office that you want to opt for the regular real tax system.
Taxes: Go to your business area
VAT collected on intra-Community supplies of services shall not be deductible.
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