France was a founding member of the European Union in 1952 and also became a member of the Eurozone in 1999, adopting the currency of the Euro.
VAT rates in France
The standard rate of VAT is 19.6%, and reduced rates of 2.1%, 5.5% and 7% are available.
VAT registration in France
There is no VAT registration limit in France for either established or non-established businesses.
Distance sales have a limit of €100,000 for VAT registration.
The format for a VAT identification number is: FR 1234567891011. Every company must hold a number like this in order for accurate taxation.
VAT returns must be submitted monthly and annual returns are not required.
Are there any Intrastat thresholds in France?
Yes. There is a limit of €460,000 for arrivals but not for dispatches.
VAT recovery in France
- Is VAT recovery permitted for non-established non-EU businesses?
Yes, France allows VAT recovery for all non-EU countries.
- Are there any non-VAT recoverable expenses?
Yes, recovery of input tax is restricted on certain items, i.e. hotel accommodation and cars.
Reverse charge applies to the majority of cross border services. An extended charge applies to a wider range of goods and services.
Requirements and regulations in France
Any company established in a non-EU member country must appoint a tax representative to register for VAT in France.
Use and enjoyment rules do not apply in France, but tax administration does allow certain transport services to move the place of supply outside of the EU if the services are used there.
The period of VAT recovery by tax authorities has a timescale of 3 or 6 years in order to prevent fraud.
Similarly, there is a period of 3 years for VAT deductions and refunds.
Please contact us for further information about paying taxes in France, and a member of our team will be happy to help you.