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From a French overseas department, I provide a service for a customer in mainland France, do I have to charge VAT?

For the determination of the place of supply of services and the methods of taxation, it is necessary to distinguish according to whether the service is provided to a customer subject to VAT: a company (“B to B” relations for “Business to Business”) or to a non-taxable customer: a customer, end consumer (“B to C” relations known as “Business to Consumer”).

Services provided to a taxable person: a business (“B to B”)

General rule

The provision of services to a taxable customer in mainland France is taxable at mainland rates (standard rate: 20%; intermediate rate: 10%; reduced rate: 5.5%), regardless of the overseas department where the service provider is established (Martinique, Guadeloupe, Reunion, Guyana or Mayotte).

Please note, certain services may however be subject to the VAT rate applicable at the place of performance, and not to the VAT rate of the place of establishment of the taxable customer, when the service providers and taxable customers are established in France (in mainland France). or in the overseas departments).

The following services are exclusively concerned: transport of goods other than intra-Community transport, ancillary services to transport other than intra-Community transport of goods, such as loading, unloading, handling and similar activities, work and appraisals on movable property bodily.

Regardless of the place of taxation (metropolis or DOM), the VAT must be paid by the service provider.

Special rules

Certain services are subject to specific rules of territoriality such as short-term rentals of means of transport, services relating to a building, passenger transport, sales to be consumed on site, and intra-Community transport of goods .

These services are subject to metropolitan rates or DOM rates depending on whether the place of delivery, determined according to these special rules, is located in metropolitan France or in a DOM. If the service is located in Guyana or Mayotte, VAT is not applicable.

For more information, you can consult the BOI-TVA-GEO-20-40 .

Services provided to a non-taxable person: a customer, end consumer (“B to C”) 

General rule

The provision of services is taxable at the DOM rates (normal rate: 8.5%; reduced rate: 2.1%) when the service provider is established in Martinique, Guadeloupe or Reunion, and the non-taxable customer is located in a city.

When the service provider is established in Guyana or Mayotte and the non-taxable customer is located in mainland France, the services are not subject to VAT.

Special rules

The same special rules as indicated above (1-B) apply here.

The intangible services listed in Article 259 B of the General Tax Code (CGI) are in principle subject to VAT instead of the service provider when the non-taxable lessee is established in mainland France, Guadeloupe, Martinique or The meeting.

However, it is accepted that these services are taxed at the rate applicable to the place of establishment or residence of the non-taxable lessee in mainland France, Guadeloupe, Martinique or Reunion, when they are provided by service providers established in France. When this place is located in Guyana or Mayotte, the service is not subject to the tax.

Source: impots.gouv.fr

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