Deliveries made by sales counters located in ports or airports, as well as deliveries made on board an aircraft or ship during transport between two Member States of the European Union (EU) constitute deliveries taxable under the conditions of common law.
These rules have consequences concerning the acquisitions made by taxable persons for their supply, and the sales they make to travellers.
These provisions do not call into question the exemption applicable to:
- deliveries of goods to be consumed on site;
- deliveries of goods intended for refueling international means of transport;
- deliveries made by sales counters located in ports, airports and in the part of the Coquelles rail terminal reserved for passengers traveling to the United Kingdom of Great Britain and Northern Ireland and deliveries made on board means of transport, goods to be carried by passengers traveling directly to a third country or to the territory of a Member State excluded from EU territory within the meaning of Article 256-0 of the General Tax Code (CGI) .
A. Sales on board an aircraft or a ship of goods to be consumed on the premises and to be taken away
1. On-board sales of goods to be consumed on the spot
On-board sales of goods to be consumed on site relate exclusively to deliveries of food products, alcoholic or non-alcoholic beverages, carried out, for the needs of passengers, in places and facilities offering customers the possibility of consumption on site (for example: bars and restaurants on board ships, removable shelves in aircraft), even if the products are delivered in disposable containers or packaging or if no table service is provided in places reserved for catering.
With regard to products subject to excise duty, are accepted as sales for consumption on the premises within the meaning of this definition, sales of products made under the following conditions:
- the alcohols mentioned in the last line of the table of article L. 313-15 of the goods and services tax code (CIBS) , sold by the glass or in small containers of a maximum of 10 cl;
- the wines mentioned in the third and fourth lines of the table of article L. 313-15 of the CIBS, sold in unopened containers according to the usual methods of consumption practiced in drinking establishments and restaurants, or delivered in small containers of 20 cl ;
- beers, mentioned in the first and second lines of the table of article L. 313-15 of the CIBS, sold on tap or in uncorked containers of 33 or 50 cl;
- intermediate products, mentioned in the eighth line of the table of article L. 313-15 of the CIBS, sold by the glass or in small containers of 20 cl;
- fermented products other than wine and beer, mentioned in the fifth and sixth lines of the table in article L. 313-15 of the CIBS, sold by the glass or in small 20 cl containers;
- cigarettes, subject to the consumer duty on manufactured tobacco mentioned in article L. 314-24 of the CIBS , sold in a pack of 20 units maximum, or 10 small cigarillos or 5 cigarillos or a cigar, corresponding to an indicative weight of 30 grams.
This tolerance does not apply to tobacco sales on non-smoking air flights.
2. On-board sales of take-out goods
These sales include all deliveries of tangible personal property, including deliveries of food products and products subject to excise duty (manufactured tobacco, alcohol and alcoholic beverages), which do not meet the conditions set out in IA § 20 and 30 , regardless of or the means of transport on which these deliveries are made.
To be considered as sales of goods to be taken on board ships and aircraft, deliveries of tangible personal property must also take place under the following conditions:
- the transfer of ownership of goods is carried out on board ships and aircraft;
- the material delivery of the goods is carried out on board the vessel or aircraft;
- deliveries are made either directly by airlines or shipping companies, or by a taxable dealer.
Note: Sales of goods on board goods which are carried in the hold and which are handed over to passengers after they have disembarked from the means of transport do not therefore constitute sales of take-out goods within the meaning of this definition.
B. Notion of travel
1. Intra-community travel
Any transport of passengers whose first point of embarkation is inside the EU and whose last point of disembarkation inside the EU is located in another Member State constitutes an intra-Community journey.
Example: As part of a New York-Paris-Rome air link, only the Paris-Rome section should be considered as an intra-Community trip for take-out sales carried out on board aircraft. Similarly, for a Paris-Amsterdam-Tokyo flight, the journey between Paris and Amsterdam must be considered as an intra-Community journey.
When the intra-Community journey includes one or more sections within the EU or when it involves regular lines ensuring the outward and return journey between a port or an airport departing from France, destined for a port or an airport located in another Member State, each leg of the journey is considered, for the purposes of applying value added tax (VAT), as an intra-Community journey.
However, this rule will not be applied in the case of sea cruises and flights carried out under cover of the same flight number, since each stopover, carried out inside or outside the EU, is not intended to embark new passengers or disembark passengers present on board. In this case, it is the VAT of the country of departure that applies to the entire trip.
Example: A Marseille-Genoa-Athens-Marseille cruise constitutes a journey subject to the tax applicable in France for the entire journey.
The fact that a means of transport, traveling between two EU Member States, uses international waters or international airspace during the journey does not modify the rules of territoriality defined in IB-1 § 60 to 80 .
As a result, deliveries of goods to be carried in travellers’ personal luggage, carried out on board means of transport during a journey between two Member States, are subject over the entire journey to VAT in the country of departure, even whether they operate in international waters or international airspace.
2. Travel to third countries or similar
has. Journeys with direct destination to a third country
Trips made to countries outside the EU or assimilated territories within the meaning of article 256-0 of the CGI are considered to be trips made directly from a Member State to these countries or territories.
b. Journeys to a Member State with a stopover in a third country
Example: A cruise departing from Marseilles and returning to Marseilles is considered a trip to a third country, when it includes a stopover in Tunis during which passengers have the possibility of disembarking.
In these two situations, the goods acquired by the passengers during these journeys and transported by them must be considered as third-party goods. These passengers will have to pay, upon arrival of the means of transport in the Member State of final destination, the duties and taxes due on importation for any purchase which exceeds the value threshold or the quantitative threshold for products subject to excise duty, fixed by the Community customs regulations in force.
II. Regime applicable to transactions carried out by shops located in ports, airports or in the Coquelles rail terminal and by taxable persons who make sales on board ships and aircraft
A. Supply Regime
1. Taxable persons who can exercise their activity under suspension of VAT
It is accepted that the “sales counters”, located in ports or airports where the flow of travelers to third countries or territories of Member States excluded from EU territory within the meaning of Article 256-0 of the CGI , and other EU Member States are not separated, as well as those located in the part of the Coquelles rail terminal reserved for passengers traveling to the United Kingdom of Great Britain and Northern Ireland, exercise their activity under cover of the VAT suspension mechanisms provided for in article 277 A of the CGI :
- customs warehousing regime, which is one of the import deferral regimes ( BOI-TVA-CHAMP-40-10 );
- suspensive tax regime, in its RFS4 function ( BOI-TVA-CHAMP-40-20 ).
The VAT suspension arrangements can be used by taxable persons who operate shops on board ships and aircraft, when these supplies are made indiscriminately for the needs of take-out sales on board aircraft or ships going to third countries and assimilated or in another EU Member State.
All of these taxable persons may import, acquire or acquire intra-Community goods intended for retail sale to travellers, with VAT suspended, under the conditions of common law set out in I of Article 277 A of the CGI ( BOI-TVA-CHAMP-40 ).
The provisions of II-A-1 § 120 and 130 relating to suspension devices do not apply to sales counters, located in ports and airports which do not provide any connection with third countries or similar, nor to taxable persons who operate shops on board ships and aircraft making only intra-Community or domestic journeys.
The same applies, in ports or airports having relations with third countries or similar, for shops open in areas exclusively dedicated to travel within France.
Note: In any event, the fact that taxable persons deliver goods to operators who operate shops located in ports or airports or in the part of the Coquelles rail terminal reserved for passengers traveling to the United Kingdom from Great -Brittany and Northern Ireland or who make sales on board ships or aircraft does not in itself constitute a sufficient reason allowing these taxable persons to obtain the benefit of a tax suspensive regime within the meaning of a of 2° of I of article 277 A of the CGI on their own supplies.
2. Rules applicable upon exit from suspension of VAT
has. General case
Taxable persons who operate shops located in ports or airports or in the Coquelles rail terminal reserved for passengers traveling to the United Kingdom of Great Britain and Northern Ireland via the fixed cross-Channel link or to on board ships or aircraft under cover of the VAT suspension devices, are liable, in accordance with the provisions of 1 of II of article 277 A of the CGI , for the tax payable on leaving the suspension, whatever the reason for the this output. These provisions also apply to manufactured tobacco sold at retail to passengers or travellers.
This exit must take place prior to the delivery of these same goods to travellers. No sale to passengers or travelers can therefore take place under suspension of VAT.
For goods intended for sale on board, the end of the suspension of VAT is supposed to occur prior to the loading of the means of transport.
The amount of tax due upon exit from the suspension of VAT must correspond to the tax that should have been paid, for each of the transactions legally carried out under suspension of VAT, due to the placement of the goods under suspension of VAT. . For more details, please refer to BOI-TVA-CHAMP-40 and BOI-TVA-CHAMP-40-20-50 .
This tax must be declared, paid and deducted under the conditions of common law (reverse charge on the declaration of turnover).
b. Special case of aircraft
Goods which have been subject to the tax when loading the means of transport and which are unsold after a journey between EU Member States may be stored under a warehouse, without any tax be collected again on leaving this warehouse.
Thus, when loading an aircraft, if the goods placed on board are both goods held under tax suspension and goods previously released for consumption and returned to the warehouse for the purposes of storage and replenishment, only the fraction of the goods held in suspension of the tax will have to be subjected to the VAT at the end of the suspension.
Taxable persons are however required to account for these goods separately, or even, according to the provisions adopted by the services responsible for monitoring the suspensive measures, to allocate these goods separately under the warehouse.
3. Simplification measure in the event of a possible option for the duty-free purchase procedure
Taxable persons who operate shops in ports, airports, the Coquelles rail terminal or on board ships and aircraft, may waive the benefit of the suspension of VAT and opt for the procedure for duty-free purchases, mentioned in l. Article 275 of the CGI .
Prior to the exercise of this option, the suspensive arrangements must be discharged.
The amount of the duty-free purchase quota applicable is strictly limited to the sole amount of deliveries of take-out goods which remain not subject to the tax. These are deliveries made to passengers traveling to a third country within the limit of sales not subject to tax made during the previous calendar year.
B. Regime applicable to the sale of goods to be taken away by travelers
Taxable persons, who operate sales counters located in ports, airports, or who operate shops on board ships and aircraft, are liable for the tax due for deliveries of goods to be taken away by travellers, when these are persons who make a journey by sea or air to another EU Member State, or when these sales are made on board a ship or aircraft during journey between two Member States departing from France.
These provisions do not apply to sales of goods for consumption on the spot, as defined in § 10 , carried out on board a ship or an aircraft.
1. Regime for deliveries of goods to be taken away by travelers made by shops located in ports and airports
has. Place of taxation
In accordance with the provisions of c of I of article 258 of the CGI , the place of deliveries of tangible personal property to be carried out by shops located in ports and airports to travelers who go, by flight or crossing, in another EU Member State, is located in France.
These deliveries are taxable under the conditions of ordinary law, when the traveler is in possession of a ticket to another Member State.
Taxable persons who make these deliveries must mention the tax payable on their turnover declaration ( CGI, art. 287 ).
b. Tax base
The tax base for these deliveries is determined under the conditions of common law mentioned in article 266 of the CGI .
For all deliveries made in shops located in ports or airports located in France which go to another EU State, the applicable rates are those in force in France on the date of delivery.
2. System for take-away sales carried out on board ships and aircraft during a journey between two Member States
has. Place of taxation
In accordance with the provisions of d of I of article 258 of the CGI , the place of delivery of tangible movable property to be carried in the personal luggage of travelers, which is carried out on board ships or aircraft during a journey between two States members, is deemed to be located in France, when the place of departure of this transport is itself located in France.
It is recalled that there are as many places of departure as there are sections within the same trip ( IB-1 § 70 ).
When these deliveries are taxable in France, taxable persons must mention the tax relating to these operations on their turnover declaration ( CGI, art. 287 ).
These provisions apply to all taxable persons who operate shops on board ships or aircraft or who carry out take-out sales by travelers on board these means of transport, whether or not these taxable persons are established in France.
b. Tax base
The tax base for deliveries of goods to take away, carried out on board ships and aircraft, is determined under the conditions of common law, in accordance with the provisions of article 266 of the CGI and article 267 of the CGI .
However, given the special rules applicable to excise duty on alcohol, alcoholic beverages and manufactured tobacco, when the taxable person has chosen to make sales throughout the journey, it is recalled that the basis of he imposition of the tax varies according to the territory of the Member State in which the excise goods are sold.
Example :On a Marseille-Porto Torres (Sardinia)-Marseille route, the tax base of the tax due in France must include French excise duties for all deliveries of these products, made in French territorial waters and international waters on departure from Marseille. It must include Italian excise duties for all deliveries of these products, made from Marseille in Italian territorial waters only. On the return, in the Porto Torres-Marseille direction, the tax payable on all sales made on board until arrival in France is the tax applicable in Italy. The basis of
For all deliveries made on board ships and aircraft traveling from France to another EU Member State, the applicable rates are those in force in France on the date of delivery. These rates apply to the entire journey.
However, for trips departing from the departments of Corsica to another Member State, the rates applicable to deliveries of goods to take away made on board ships and aircraft are the special rates mentioned in article 297 of the CGI , when these goods have been loaded on board the means of transport in the departments of Corsica.
3. Regime applicable to goods held in stock on board means of transport making a journey between two EU Member States
has. General case of goods intended for sale to take away or for sale to be consumed on the spot
The rules applicable to these goods are described in II-B-5 § 300 of BOI-TVA-CHAMP-10-10-40-10 .
b. Special case of manufactured tobacco
The tax system for sales of manufactured tobacco, mentioned in article 298 quaterdecies of the CGI , targets tobacco delivery operations that suppliers, identified with the General Directorate of Customs and Indirect Taxes (DGDDI), make to the network. tobacconists designated as employees of this administration for the retail sale of manufactured tobacco.
Under the terms of article 298 quaterdecies of the CGI, the tax is paid on the retail selling price by the supplier, instead of the customers. The latter cannot exercise any right to recover the tax invoiced to them.
The application of this rule would lead to subjecting manufactured tobacco intended for sale on board ships and aircraft and released for consumption in France at the time of loading of the means of transport to double taxation when they are sold from another Member State.
Example: This would be the case of tobacco loaded by a ferry in Marseilles, French VAT included, and sold from Porto Torres (Sardinia), it being understood that in this direction of the crossing, Italian VAT is payable on the sales made.
In order to avoid this double taxation and provided that taxable persons who operate sales counters or who carry out on-board sales of takeaway tobacco are considered as buyers-resellers of tobacco manufactured by the services of the DGDDI, it is accepted that these taxable persons:
- deduct the tax incurred on the purchase, import or intra-Community acquisition of these products, or, where applicable, on exit from the suspension of VAT. For manufactured tobacco previously placed under one of the VAT suspension devices mentioned in 1° and 2° of I of article 277 A of the CGI , it is recalled that the tax is payable on leaving the suspension. It must correspond to the tax that should have been paid, for each of the transactions legally carried out under suspension of the tax, due to the placing of the assets under suspension ( II-A-2-a § 160 );
- subject manufactured tobacco to VAT at the place of departure of the means of transport ( II-B-2-a § 250 ).
The tax for which taxable persons are liable is determined on the basis of the retail selling price applied on board the said means of transport.
The amount of tax due is obtained by applying the VAT rate to the sale price, all taxes included, previously reduced excluding tax by applying the conversion coefficient.
These taxation rules also apply to sales of manufactured tobacco made by sales counters located in ports and airports.
III. Clarifications concerning exempt transactions
Deliveries of victualling goods for ships mentioned in 2° of II of Article 262 of the CGI and aircraft mentioned in 4° of II of Article 262 of the CGI, deliveries by the sales counters of ports, airports and the Coquelles rail terminal, goods to be carried in the luggage of travelers going directly to a third country or a territory of a Member State excluded from the tax territory of the EU, within the meaning of Article 256- 0 of the CGI , continue to be carried out without being subject to VAT.
A. Deliveries of goods to be taken away by travelers going directly to a third country by flight, crossing or by rail from the Coquelles terminal
Deliveries of goods to be taken away by travelers, who go directly to a third country or to a territory of an EU Member State excluded from the territory within the meaning of article 256-0 of the CGI , may , when they are carried out by sales counters located in ports, airports or in the Coquelles rail terminal or by taxable persons who operate shops on board means of transport or carry out take-out sales there, continue not to not be subject to VAT under the usual conditions, subject to the details which appear in this BOI.
B. Deliveries of goods to be consumed on site
IV. Obligations of taxable persons
A. Supply Obligations
1. Formalities relating to VAT suspension arrangements
Taxable persons, who operate shops in ports or airports as well as in the Coquelles rail terminal or on board ships and aircraft and who benefit from a suspensive regime for their supplies, must comply with all the obligations required for the operation of the VAT suspension mechanisms. These obligations are set out in BOI-TVA-CHAMP-40 .
2. Formalities applicable to taxable persons who opt for the application of the duty-free purchase procedure
Taxable persons who opt for the application of the duty-free purchase regime mentioned in article 275 of the CGI are required to comply with the obligations relating to this regime. These are commented on in BOI-TVA-CHAMP-30-30-50-20 .
In particular, they have the obligation to deliver to their supplier established in France or to keep for their intra-community acquisitions or imports, a certificate in accordance with the provisions of article 275 of the CGI.
B. Obligations relating to the delivery of goods to be taken away by travelers
1. Case of sales made by shops located in ports or airports or within the Coquelles rail terminal
Sales must be evidenced by a document, receipt or invoice as the case may be, which includes all the information making it possible to know:
- the nature, unit value, number of items sold;
- the identity of the purchaser (mention of the first five letters);
- the number of the ticket (mention of the first five digits or letters of the ticket);
- the place of destination shown on the ticket;
- the date of the transaction.
Taxable persons, who operate shops located in ports or airports as well as within the Coquelles rail terminal, must also keep separate accounts for deliveries subject to VAT and exempt deliveries.
In the absence of the necessary information on the documents evidencing the sale or in the absence of separate accounts for the deliveries, all the sales made must be subject to the tax.
For operations that are exempt, sellers must indicate the amount of the sale on the boarding pass, or on any other document approved by the DGDDI service or the General Directorate of Public Finances (DGFiP) on which they depend if these taxable persons have opted for the common law system ( II-A-2-a § 140 ). With the authorization granted by these same administrations, these vendors may implement provisions of a different nature, provided that they provide comparable guarantees.
2. Case of sales made on board ships and aircraft
Taxable persons who carry out sales on board means of transport during a journey between two EU Member States must keep daily accounts of sales made on board based on receipts, invoices or receipts issued to buyers, distinguishing these operations according to the place of departure of the means of transport, and, for operations taxable in France, distinguishing according to the rates applicable in France.
The tax payable for all deliveries taxable in France, during a flight or a crossing between two Member States, must be shown on their declaration of turnover.
When on board the same means of transport, the taxable persons liable for the tax carry out taxable transactions and exempt transactions, within the meaning of III § 340 , these taxable persons must keep separate accounts for these transactions.
In addition, taxable persons are required to distinguish in their accounts, goods acquired exempt from VAT for refueling international means of transport, from other goods acquired inclusive of all taxes for the take-away sale carried out on board. of said means of transport.
C. Formalities applicable to taxable persons not established in France
Taxable persons not established in France, who carry out taxable transactions within the meaning of this BOI, are bound by the same obligations as taxable persons established in France.
Taxable persons established in another EU Member State must identify themselves to pay the tax due and fulfill their reporting obligations.
Taxable persons not established in the EU are required to appoint a representative in France, in accordance with the provisions of I of article 289 A of the CGI , responsible for all of these formalities.
Note: By symmetry, French taxable persons who are liable for duties and/or taxes in another EU Member State, in respect of operations carried out on board ships and aircraft, must identify themselves in the Member States of the EU. concerned, in accordance with the procedures laid down by those Member States.