5 Major VAT developments in France

Jan 1, 2022

• Mandatory deferral of VAT upon import
• Import VAT due will normally be pre-filled in the online declaration based on the amounts of imports declared towards the DGDDI
• DEB return replaced by Intrastat and ECSL returns

Jan 1, 2023

• Optional application of VAT grouping

As of Jan 1, 2024

• Gradual implementation of Mandatory B2B E-Invoicing and Real Time reporting

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Other developments

• Distance sales regime – Regularization of errors made by French operators
• Penalties for sale without invoice – Consequences in terms of a reliable audit trail
• French 2022 Finance Bill imposes additional new criteria on Intermediaries filing IOSS returns
• New Caledonia – Increase of VAT rates to 11% for services as of 2022, increase of standard and reduced rate as of July 2022
• Fictitious invoice: the 50% fine in accordance with the Constitution
• Permanent Establishment: An Extensive Approach Adopted by the French Supreme Court
• [Proposal] Option to tax for financial services—a newly “free choice” option

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