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Guidance: Transactions carried out between mainland France and the overseas collectivities and between these collectivities

I. Principles

(1)

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The following details concern the overseas communities governed by article 73 of the Constitution of October 4, 1958 and where value added tax (VAT) applies: Guadeloupe and Martinique, within the market unique Caribbean, as well as Reunion.

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VAT is applicable in these communities under the same conditions as in metropolitan France, subject to specific arrangements ( BOI-TVA-GEO-20 ).

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With regard to exchanges with and between these overseas communities, special rules apply:

  • with regard to the dispatch or transport of goods, these overseas communities are considered as third territories ( general tax code [CGI], art. 294, 2 and 3 );
  • with regard to the provision of services, these overseas communities are not considered as third territories.

For the definition of third-party territories, reference should be made to II-C § 150 et seq. of BOI-TVA-CHAMP-20-10 .

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Thus, the provisions of the General Tax Code which designate the purchaser, lessee or recipient as liable for the tax when the supplier or service provider is not established in France (reverse charge regimes provided for in Articles 283-0 and of the CGI ) are not applicable to the provision of services carried out within the framework of relations between the metropolis and these communities.

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On the other hand, because of the particular rates applicable in the overseas collectivities covered by article 73 of the Constitution of October 4, 1958 and defined in article 296 of the CGI , in article 296 bis of the CGI and in Article 296 ter of the CGI , the identification of the place of actual performance of a service allows the rate applicable to it to be determined.

II. Deliveries of tangible personal property

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Article 294 of the CGI specifies the rules applicable to exchanges with the overseas communities listed in I § 5 .

These provisions entail the following consequences ( II § 60 to 69 ) with regard to relations between mainland France and the overseas communities concerned and the relations of these overseas communities with each other.

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Benefit from the exemption provided for in terms of export, deliveries of tangible personal property transported or dispatched:

  • from mainland France to Guadeloupe, Martinique or Reunion;
  • from Guadeloupe or Martinique to mainland France, another Member State of the European Union (EU), or Reunion;
  • from Reunion to metropolitan France, another EU Member State, Guadeloupe, or Martinique.

The communities of Guadeloupe and Martinique are not considered as export territories with respect to each other.

Deliveries of tangible personal property sent or transported to Guyana, Mayotte or overseas communities not covered by article 73 of the Constitution of October 4, 1958 , are in all cases treated as exports. to third countries.

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In this sense, the VAT rules applicable to e-commerce transactions as resulting from Council Directive (EU) 2017/2455 of 5 December 2017 amending Directive 2006/112/EC and Directive 2009/132/EC with regard to certain value added tax obligations applicable to the provision of services and distance sales of goods and Council Directive (EU) 2019/1995 of 21 November 2019 amending Directive 2006/112/EC with regard to the provisions relating to distance sales of goods and certain domestic deliveries of goods and in particular transposed in II bis of article 256 of the CGI , in 2° of V of article 256 of the CGI, in IV of article 258 of the CGI andarticle 258 A of the CGI are not applicable in overseas communities.

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Consequently, deliveries of goods departing from mainland France, another EU Member State or even a country or territory outside the EU and destined for a non-taxable person in one of the local authorities overseas are not qualified as distance sales of goods. The rules of territoriality applicable to these deliveries fall under the general principles of I of article 258 of the CGI and in particular commented on I § 10 to 150 of the BOI-TVA-CHAMP-20-20-10 .

In addition, the accountability rules specific to electronic interfaces of 2° of V of article 256 of the CGI and developed in BOI-TVA-DECLA-10-30 are not applicable to deliveries of goods located in these overseas communities. -sea.

Finally, article 296 quater of the CGI recalls that article 298 sexdecies G of the CGI and article 298 sexdecies H of the CGI are not applicable in Guadeloupe, Reunion and Martinique ( BOI-TVA-DECLA-20- 20-60 ).

Example: A final consumer located in Guadeloupe orders a good online worth €140 using an electronic interface. The goods are shipped directly from a warehouse located in Marseille. 2° of II bis of article 256 of the CGI not being applicable to this operation, it cannot be qualified as distance selling of goods imported from third territory or third countries. Nor is the platform deemed to have personally acquired and delivered the goods.

The VAT rules applicable to this delivery will be those resulting from I of article 258 of the CGI. In addition, in order to determine the person liable for the import operation, reference should be made to 2 of article 293 A of the CGI .

Note: The same reasoning will apply to goods shipped from another EU Member State or from a country or territory outside the EU.

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On the other hand, and insofar as the territories of the overseas communities are considered, in accordance with 2 and 3 of article 294 of the CGI, as third territories for the purposes of the VAT rules applicable to the supply of goods, a delivery of goods departing from one of these territories and intended for an end consumer located in mainland France is likely to be subject to all the rules resulting from the VAT package on e-commerce if it complies with the conditions . This clarification concerns both communities where VAT applies and those where it does not.

Example: A final consumer located in Lyon orders a good online worth €130 using an electronic interface. The goods are shipped directly from a warehouse located in Martinique to the consumer in Lyon. Customs clearance operations are carried out at Paris-Orly airport. This operation will be qualified as distance selling of goods imported from third territory or third countries located in France by application of IV of article 258 of the CGI ( II § 50 and 60 of BOI-TVA-CHAMP-20-20-30 ). Also, and by application of a) of 2° of V of article 256 of the CGI, the electronic interface having facilitated the sale will be deemed to have personally acquired and delivered the goods and therefore liable for the VAT relating to the sale to distance (II § 50 and 70 of BOI-TVA-DECLA-10-30 ). Finally, by application of 2° of 2 of article 293 A of the CGI, the electronic interface will also be liable for the VAT relating to the import operation ( I § 10 to 30 of the BOI-TVA-DECLA-10 -30 ).

The electronic interface will be able to join the special regime of article 298 sexdecies H of the CGI in order to declare and pay the VAT relating to the distance sale of imported goods and thus benefit from the exemption measure of the import VAT induced by joining the said special scheme ( BOI-TVA-DECLA-20-20-60 ).

For more details on the criteria for qualifying a delivery of distance selling goods as goods imported from third territory or third countries, please refer to BOI-TVA-CHAMP-10-10-40-60 . Regarding the territorial regime for distance sales of goods, please refer to BOI-TVA-CHAMP-20-20-30 . Finally, the accountability rules specific to electronic interfaces are set out in BOI-TVA-DECLA-10-30 .

III. Imports

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Is considered as an importation of goods ( CGI, art. 294, 3 ) any exchange of goods between an overseas community and the outside, with the exception of exchanges between Guadeloupe and Martinique. The definition of imports is specified in BOI-TVA-CHAMP-10-30 , in particular in II-B § 170 to 220 of BOI-TVA-CHAMP-10-30 with regard to the situation of Guadeloupe, Martinique and Of the reunion.

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Imports thus defined are, where applicable, subject to VAT according to the rules applicable in the import territory determined under the conditions set out in BOI-TVA-CHAMP-20-65 .

IV. Services

A. Relations between overseas collectivities and the territories of foreign States

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With regard to the relations of the overseas communities defined in article 73 of the Constitution of October 4, 1958 with the other Member States of the EU and third countries located outside the EU, the rules of territoriality provided for in article 259 of the CGI , article 259 A of the CGI , article 259 B of the CGI , article 259 C of the CGI and article 259 D of the CGI apply under the same conditions as in relations between metropolitan France and these other States and third countries.

Note : However, for this purpose, the territory of Monaco is treated as if it were part of the metropolitan territory.

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When, pursuant to these provisions, the provision of services is taxable in Guadeloupe, Martinique or Reunion, the applicable rate is that in force for this provision of services in this community.

B. Relations between the authorities governed by Article 73 of the Constitution and metropolitan France and relations between these authorities

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The application of the rate in force at the place where the operation is located pursuant to the provisions of article 259 of the CGI to article 259 D of the CGI is the principle subject to the adjustments provided for in IV-B § 120 and following . .

1. Services provided to a taxable person

has. Provision of services falling under 1° of article 259 of the CGI

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Pursuant to 1° of Article 259 of the CGI , the services provided to a taxable person acting as such are subject to VAT instead:

  • the taxable person’s registered office or, failing that, his permanent establishment for which the services are provided;
  • or of his domicile or habitual residence, in the absence of such a registered office or such a stable establishment.

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Also, the provision of services which fall under 1° of article 259 of the CGI are subject to VAT at the rate of the lessee’s place of establishment. When the taxable lessee is established in Guyana, Mayotte or abroad, national VAT is not applicable.

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However, it is accepted that certain services which fall under the general principle of 1° of article 259 of the CGI are subject to VAT, not at the rate applicable to the place of establishment of the lessee, but at that of their execution. when the subject service providers and lessees are established in mainland France, Guadeloupe, Martinique or Reunion. Similarly, VAT is not applicable when the performance takes place in Guyana or Mayotte when the service providers and taxable lessees are established in mainland France, Guadeloupe, Martinique or Reunion.

The following are limited to:

  • transport of goods other than intra-community;
  • ancillary services to transport other than intra-Community transport of goods, such as loading, unloading, handling and similar activities;
  • work and appraisals on tangible movable property.

Operators can take advantage of these rules for services provided from 1 January  2010.

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Example 1: The service of transporting goods from one point to another in Guadeloupe, Martinique or Reunion performed by a taxable person established in this local authority supplied to a customer established in mainland France is subject to the rate applicable in the local authority concerned. The unloading service carried out for the benefit of the same lessee by another service provider established in this community follows the same regime.

Example 2: The expert service carried out on a motor vehicle damaged in Guadeloupe, Martinique or Reunion, provided to an insurance company established in mainland France is subject to the rate applicable in the community concerned.

Example 3: The breakdown service for a motor vehicle that has broken down in Guyana or Mayotte, issued to an insurance company established in mainland France with which the owner of the broken down vehicle has taken out breakdown assistance cover is not not subject to VAT.

b. Provision of services referred to in article 259 A of the CGI

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Article 259 A of the CGI provides for several services a place of taxation which derogates from the general principle of taxation at the place of the taxable lessee provided for in 1° of article 259 of the CGI . For the latter, the applicable rate is determined according to the location criterion defined by these provisions.

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CGI Papers Services Location criteria Execution of the service in:
Metropolis Guadeloupe, Martinique, Reunion Guyana, in Mayotte
CGI, art. 259A, 1° Rental of short-term means of transport Place of provision of the means of transport Metropolitan rates Rates provided for in article 296 of the CGI to article 296 ter of the CGI No taxation
CGI, art. 259A, 2° Services related to a building Location of the building
CGI, art. 259A, 4° Passenger transport Distance traveled
CGI, art. 259A, 5°b Sales for consumption on the spot other than sales on board ships, aircraft and trains Place of physical execution
CGI, art. 259 A, 5° c Sales for consumption on board ships, aircraft and trains Place of departure of intra-Community passenger transport
CGI, art. 259 A, 5° bis Event access services Place of the event
CGI, art. 259A, 8° Unique travel services Place of establishment of the service provider
Summary table of the provision of services derogating from the general principle of taxation instead of the taxable customer

2. Services provided to a non-taxable person

has. Provision of services falling under 2° of article 259 of the CGI

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The provision of services which do not come under article 259 A of the CGI and which are provided by a service provider established in mainland France or in Guadeloupe, Martinique or Reunion to a non-taxable person established in one of these overseas communities -sea or in mainland France are subject to VAT at the rate of the service provider’s place of establishment pursuant to 2° of article 259 of the CGI .

When this place is located in Guyana or Mayotte, the operation is not subject to VAT.

b. Provision of services referred to in article 259 A of the CGI

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The services provided to non-taxable persons, referred to in article 259 A of the CGI , are subject to VAT under the conditions applicable to the place of their location as defined by article 259 A of the CGI.

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CGI Papers Services Location criteria Execution of the service in:
Metropolis Guadeloupe, Martinique, Reunion Guyana, in Mayotte
CGI, art. 259 A, 1°-a Rental of short-term means of transport Place of provision of the means of transport Metropolitan rates Rates provided for in article 296 of the CGI to article 296 ter of the CGI No taxation
CGI, art. 259 A, 1°-b Rental of means of transport other than short-term Place of establishment of the lessee
CGI, art. 259A, 1°-c Pleasure boat rental other than short term Place of provision if it is made from a permanent establishment, failing which place of establishment of the lessee
CGI, art. 259A, 2° Services related to a building Location of the building
CGI, art. 259A, 4° Transport of goods other than intra -Community
Transport of passengers
Distance traveled
CGI, art. 259 A, 5°-a Cultural activities, fairs, exhibitions and the like, services of the organizers and accessories Location of the activity
CGI, art. 259 A, 5°-b Sales for consumption on the spot other than sales on board ships, aircraft and trains Place of physical execution
CGI, art. 259A, 5°-c Sales for consumption on board ships, aircraft and trains Place of departure of intra-Community passenger transport
CGI, art. 259A, 6° Activities incidental to transport, appraisals or work relating to tangible movable property Place of physical execution
CGI, art. 259A, 7° Services of intermediaries acting in the name and on behalf of others Place of taxation of the main transaction
CGI, art. 259A, 8° Unique travel services Place of establishment of the service provider
CGI, art. 259A, 3° Intra-Community transport of goods Transport departure point Metropolitan rates / /
Summary table of the provision of services derogating from the general principle of place of taxation of services provided to non-taxable persons and designated in article 259 A of the CGI

Note: Article 20 of Law No. 2018-1317 of 28 December 2018 on finance for 2019 introduces, in 7° of I of Article 295 of the CGI , an exemption for short-term rentals and charters of vessels of boat with a hull length of more than 24 meters and a tonnage of less than 3,000, made available from the territory of Guadeloupe or Martinique, when the purpose of the rental or charter is to carry out pleasure trips outside territorial waters.

vs. Provision of services designated by article 259 B of the CGI

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The provision of services listed in article 259 B of the 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 Reunion.

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That said, 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.

Operators can take advantage of these rules for services provided from 1 January 2010.

V. Determination of the person liable

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Overseas collectivities falling under Article 73 of the Constitution are not considered as third territories for the purposes of provisions other than those relating to the exchange of goods with other territories. Also, the provisions of 2 of article 283 of the CGI are not applicable when the taxable lessee is established in Guadeloupe, Martinique or Reunion and the service provider in mainland France, the latter therefore being liable for the tax. Similarly, the service provider established in Guadeloupe, Martinique or Reunion, who provides a service falling under the general principle of 1° of article 259 of the CGI to a lessee established in mainland France, remains liable for the tax.

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RES N°2007/03 (TCA) of January 23, 2007: Consequences of the VAT reverse charge mechanism provided for in article 94 of law n° 2005-1720 of December 30, 2005 on amending finances for 2005 on transactions in overseas communities covered by Article 73 of the Constitution of October 4, 1958 and carried out by taxable persons established in mainland France and vice versa.

Question :

What are the consequences of the VAT reverse charge mechanism provided for in article 94 of law no. article 73 of the Constitution of October 4, 1958 and carried out by taxable persons established in mainland France and vice versa?

Reply :

The provisions of the second paragraph of 1 of article 283 of the CGI provide that when a delivery of goods or a provision of services subject to value added tax (VAT) in France is carried out by a taxable person established outside France, the tax due in this respect must be self-liquidated by its customer as soon as the latter has a VAT identification number in France.

With regard to the provisions of the CGI, the overseas communities covered by article 73 of the Constitution of October 4, 1958 cannot be considered as third territories even if the relations between mainland France and these communities as well as the relations between these communities are governed by specific provisions.

It is recalled that taxable persons established in these overseas communities are liable for the VAT relating to transactions located in mainland France. Conversely, taxable persons established in mainland France are liable for the VAT relating to transactions located in these overseas communities.

Article 94 of law no. 2005-1720 of December 30, 2005 on amending finances for 2005 has no effect on determining who is liable for these operations.

VI. Place of subscription of the declarations of turnover and declarative methods

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Pursuant to the combined provisions of 1 of article 287 of the CGI and article 32 of appendix IV to the CGI, declarations of turnover must be submitted to the competent business tax department to receive the declaration. of results.

Online turnover declaration forms are available at www.impots.gouv.fr.

The reporting obligations and formalities are specified in BOI-TVA-DECLA-20 et seq . In accordance with the provisions of III of article 1649 quater B quater of the CGI , companies must electronically transmit their VAT declaration according to the methods specified in BOI-BIC-DECLA-30-60-40 .

The VAT reporting procedures relating to operations carried out in mainland France, Guadeloupe, Martinique or Reunion are identical regardless of the location of the main establishment or the company’s head office (mainland, Guadeloupe, Martinique , Reunion, Guyana or Mayotte).

A. Companies subject to the normal real regime

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In particular, companies must declare in box B of form no. 3310-CA3-SD (CERFA no. 10963) the transactions subject to VAT carried out:

  • in mainland France, on lines 08 to 9B;
  • in Guadeloupe, Martinique or La Réunion, on lines 10 and 11;
  • for the release for consumption of petroleum products, in lines P1 and P2;
  • for taxable imports, lines I1 to I6.

In addition, they must file Annex No. 3310-A-SD (CERFA No. 10960) if they carry out transactions taxable at a particular rate, in particular when these transactions are taxable in Guadeloupe, Martinique or Reunion, at a particular rate, or if they are liable for similar taxes.

Persons liable for the actual system complete, on declaration no. 3310-CA3-SD , lines A1 to 2E of boxes A and B and, if necessary, form no. 3310-A-SD.

Forms 3310-CA-3-SD and 3310-A-SD are available online at www.impots.gouv.fr.

B. Companies subject to the simplified tax regime

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When filing their annual declaration, companies must declare in box I of form CA12/CA12E n° 3517-S-SD (CERFA n° 11417) the total amount of transactions subject to VAT carried out:

  • in mainland France, on lines 5A, 5B, 06, 6C, 9A and 10;
  • in Guadeloupe, Martinique or La Réunion, on lines 07 and 08;
  • for deliveries of electricity, natural gas, heat or cold taxable in France, purchases of goods or services from a taxable person not established in France, purchases of intra-Community services, transfers fixed assets, self-delivery and other taxable transactions, in lines AA to 15.

In addition, these companies must mention on form CA12/CA12E n° 3517-S-SD :

  • transactions carried out subject to a particular rate, in particular when transactions are taxable in Guadeloupe, Martinique or Reunion at a particular rate (regardless of where the transaction is carried out), on line 09 (box I);
  • the assimilated taxes for which they are liable (section IV).

Form 3517-S-SD is available online at www.impots.gouv.fr.

(280-360)

Source: gouv.fr

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