France Hit by €10 Billion VAT Gap: E-Commerce Fraud and Reforms Shake 2025 Budget

• France faces a €10 billion shortfall in VAT revenues, disrupting its 2025 budget and deficit reduction plans.
• The shortfall is attributed to weak consumer spending, massive undervaluation and fraud in e-commerce imports (notably from Shein and Temu), and systemic VAT fraud.
• The government plans to end the €150 small-parcel exemption by 2026, introduce a €2 tax on small non-EU parcels, and implement mandatory e-invoicing and real-time reporting.
• Enhanced customs checks and greater cooperation with EU partners are being pursued to combat cross-border VAT evasion.

Source: meridianglobalservices.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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