France – Comprehensive VAT Guide (2026 Edition)

1. Country Overview

2. Local VAT Term

3. VAT Rates

• 10% Reduced Rate: A 10% VAT rate applies to a range of items and services, including restaurant and catering services, take-away and prepared foods, non-alcoholic beverages served in cafes and restaurants, some foodstuff (e.g. processed foods), hotel accommodations, passenger transport (domestic rail, bus, etc.), certain home renovation and repair services on older residential housing, and some agricultural supplies and live animals for food production. (It also covers certain cultural admissions like cinemas and museums in some cases.) This rate is intended for everyday services and goods to reduce consumer costs in those areas. [eurotax.fr]
• 5.5% Reduced Rate: A 5.5% VAT “reduced rate” is applied to many essential or culturally important goods and services. Key examples include most basic foods and groceries (like fresh food items), water and non-alcoholic beverages, children’s clothing and equipment, books and newspapers (physical and electronic), entrance to museums, concerts, and some cultural events, pharmaceutical products and medical devices for personal use (including certain medical equipment and medicines reimbursed by social security), residential energy products (e.g. energy for domestic heating), and construction of social housing or certain energy-saving home improvements. This 5.5% rate is aimed at necessities and items of social importance. Notably, as of October 1, 2025, the supply and installation of small-scale solar photovoltaic panels (≤9 kW) was moved from the standard rate down to 5.5% to encourage renewable energy use. [eurotax.fr] [vatcalc.com], [eurotax.fr] [vatfaqs.com]
• 2.1% Super-Reduced Rate: A 2.1% VAT rate (often called the super-reduced rate) applies narrowly to certain goods. In France, this includes some press publications (e.g. newspapers and periodicals with a daily publication frequency), licensed television broadcasting (the TV license fee), and some specific pharmaceutical products largely reimbursed by France’s social security. (This rate also historically applied to certain theatrical performances and some livestock intended for human consumption.) The 2.1% rate is one of the lowest VAT rates in the EU and is reserved for items of strong social importance or special cultural significance. [eurotax.fr]
• 0% (Zero Rate) and Exemptions: France generally does not have a broad “zero-rated” tier for domestic sales (unlike some countries that zero-rate basic groceries, for example). However, a 0% VAT rate (effectively tax-exempt with credit) applies to exports of goods to outside the EU and intra-Community supplies of goods to VAT-registered businesses in other EU member states. These transactions are zero-rated – VAT is not charged, but the supplier retains the right to deduct input VAT related to those sales. Additionally, international and intra-EU transport of passengers or goods can often qualify for 0% VAT (e.g. international air and sea travel is zero-rated in France). [vatcalc.com]
  Exempt supplies (no VAT charged, no credit for inputs): Certain goods and services are exempt from VAT under French and EU law, meaning no VAT is charged to the customer, but the supplier generally cannot recover the related input VAT (unless a specific provision allows an option to tax). Key exempt sectors in France include:
  • Financial and insurance services, such as banking services, loans, credit, insurance and reinsurance (though some fees or specific financial services can be taxed if they opt in or are outside the core exemption). [vatcalc.com]
  • Healthcare and medical services, when provided by licensed medical professionals (hospital and medical fees are typically exempt). Medications sold to patients may be taxed at reduced rates unless covered by the social security reimbursement (those are 2.1% as noted above). [vatcalc.com]
  • Education and training services, when provided by public or approved institutions (schools, universities, certain vocational training organizations) are exempt from VAT. [vatcalc.com]
  • Social, welfare and care services, often provided by non-profit organizations or public bodies (e.g. certain services for the elderly or disadvantaged groups), are exempt. [vatcalc.com]
  • Real estate transactions: The sale of older real estate (generally buildings completed more than 5 years ago) and rentals of unfurnished residential property are exempt from VAT. (Conversely, the sale of a new building or building land is ordinarily subject to VAT, and commercial property rentals are taxable with an option for exemption in some cases. France’s rule is that sales of new property – defined usually as a sale occurring within 5 years of the completion of construction – are subject to VAT, while sales of older property are exempt from VAT with an option to tax by the seller in certain conditions.) [vatcalc.com] [vatcalc.com]
  • Gambling and betting activities (lotteries, casino gaming etc.) are VAT-exempt in France, although they may be subject to other special gambling duties. [vatcalc.com]
  • Certain non-commercial activities by non-profit organizations, as well as specific services like postal services by La Poste, and financial transactions involving stamps and certain insurance transactions, are also exempt.

4. VAT Number Format

5. Registration Requirements

• A French-established business (with its place of business or fixed establishment in France) must register for VAT if its annual turnover in the past 12 months exceeds €85,000 for sales of goods (and certain housing/restaurant activities) or €35,000–€37,500 for services. (Note: The service threshold was €35,000 and is currently €37,500; these figures are periodically adjusted. France’s 2024 budget proposal aimed to raise thresholds to €93,000 (goods) and €41,250 (services) from 2026, but as of early 2026 this change was put on hold). Businesses below the threshold can choose to register voluntarily to recover input VAT, but if they remain unregistered they must not charge any VAT (France offers a small business exemption regime known as franchise en base where qualifying small enterprises do not charge VAT at all). [vatcalc.com] [vatcalc.com], [vatcalc.com] [eurotax.fr]
• A Non-established (foreign) business with no presence in France generally has no threshold – meaning if it is making taxable supplies in France (e.g. selling goods located in France or certain services deemed supplied in France), it must register before the first such supply is made. For example, if a US company ships goods from a stock in France to French customers (and the customer is not handling the VAT), that US company must register and charge French VAT on those sales from the first euro of turnover. Similarly, a foreign company organizing an event or training in France might need to register to collect VAT on participation fees (if not covered by reverse-charge rules). There are some exceptions where foreign suppliers do not need to register in France because the VAT is instead accounted for by the customer; these are explained below under Reverse Charge. [vatcalc.com]

6. VAT Grouping Rules

• Formation and Eligibility: All members of the VAT group must be established or domiciled in France (only French-established businesses can join). The standard requirement is that one member (usually the parent company) directly or indirectly holds at least 50% of the capital or voting rights of the others, although financial and economic interdependence are also considered. The group is created by an option that must be exercised for a minimum period (e.g. initial commitment of 3 years). [vatcalc.com] [vatcalc.com], [vatcalc.com]
• Single VAT Registration: The VAT group is assigned one consolidated VAT number. The representative member (often the parent or designated “group head”) is responsible for filing a single combined VAT return covering all transactions of the group. Individual group members do not file separate VAT returns during the life of the group. Instead, the group head handles reporting and payment of VAT for all members. [vatcalc.com]
• Intra-group transactions: Supplies of goods and services between members of the same VAT group are disregarded for VAT purposes – no VAT is charged on inter-company invoices within the group. This eliminates cash flow costs and administrative burden of taxing and then claiming input tax on internal transactions. However, sales by the group to parties outside the group are taxable in the normal way. All members of the group are jointly and severally liable for the group’s VAT debts and compliance obligations. [vatcalc.com]
• Pre-2023 regime: Before 2023, France did not permit full VAT grouping. A limited “financial consolidation” scheme existed (since 2012) where related companies could designate a single paying entity to net off VAT balances (credits and debits) among them, but each entity still filed its own return. The new 2023 regime is a full grouping regime aligned with article 11 of the EU VAT Directive, similar to those in countries like Germany or the Netherlands. [vatcalc.com]

7. VAT Recovery for Foreign Businesses

• Foreign businesses with French VAT registration: A foreign business that is registered for VAT in France (e.g. via a fiscal representative or direct registration) is effectively treated the same as a domestic business for VAT recovery. It can deduct input VAT on French expenses on its periodic VAT returns, just as French companies do, provided the expenses relate to its taxable business activities in France. There is no separate refund mechanism needed in this case – the input VAT is reclaimed through the return (see Section 15 on the right to deduct and exceptions). This scenario is common for foreign companies that maintain a taxable presence or activity in France (such as importing and selling goods in France, or providing services that require a local VAT number). [eurotax.fr]
• Foreign businesses without French VAT registration: If a company based abroad incurs French VAT (for example, on local business travel, trade show expenses, French supplier invoices, etc.) but does not make any taxable supplies in France that require VAT registration, it generally should not register for French VAT. Instead, it can seek a refund of the French VAT paid on those expenses through special refund schemes, without needing to register. The European Union has two such schemes: one for EU-established businesses (the “8th Directive” refund procedure) and one for non-EU businesses (the “13th Directive” refund procedure). These are discussed in detail in Section 16. In essence, an EU business will submit an electronic refund claim via its home tax authority’s portal (which forwards it to France). A non-EU business must typically submit a direct claim to the French tax authorities (often electronically via a dedicated portal). Successful refund claims result in the French Treasury reimbursing the foreign business for the VAT incurred on eligible expenses. [eurotax.fr], [eurotax.fr] [vatcalc.com], [eurotax.fr]

8. Fiscal Representative Requirements

• Non-EU businesses: If a company is established in a non-EU country, French law mandates a fiscal representative unless that country has a mutual assistance (reciprocity) agreement with France for tax matters. As of 2026, France has waived the “reciprocity” requirement for VAT registration, meaning most non-EU businesses are subject to the fiscal rep requirement regardless of their home country. (Historically, a list of exempt countries existed; for example, France previously exempted companies from certain countries like Norway or Japan due to treaties, and since Brexit, the UK has been added to the no-rep-needed list. However, recently France has signaled that all non-EU countries’ businesses may claim VAT refunds without reciprocity. Still, for VAT registrations, appointing a representative remains the norm for non-EU firms.) [vatcalc.com], [eurotax.fr] [vatcalc.com] [vatcalc.com]
• EU businesses: Companies based in another EU Member State do not need a fiscal representative to register in France (EU law prohibits requiring it for EU-based businesses) – they can register directly with the French tax authorities using their EU address. They will instead typically appoint a tax agent (not fiscally liable, just an address for service) if needed for convenience.
• Responsibilities of the representative: The fiscal representative is responsible for fulfilling all VAT obligations on behalf of the non-EU company – including filing VAT returns, paying VAT, handling audits, and responding to information requests. Because the representative is jointly and severally liable for the VAT, they often require security (bank guarantees) or charge higher fees to cover the risk. The representative’s details (name, address, VAT number) must be included on the non-EU company’s French invoices. [vatcalc.com] [vatcalc.com]
• Limited fiscal representation: In some cases, a non-EU company that makes only VAT-exempt supplies in France (or certain specific transactions not creating a VAT payment obligation) might be allowed a lighter form of representation or none at all. For example, if a non-EU company is only making zero-rated exports from France, it might still register to reclaim input VAT and could possibly do so without a full fiscal representative (this typically requires authorization and is handled on a case-by-case basis). [vatcalc.com]

9. Currency and Foreign Exchange (FX) Rules

10. VAT Law and Legal Framework

• The Code Général des Impôts (CGI) – the French General Tax Code – contains the primary provisions governing VAT, including definitions of taxable persons, taxable transactions, place of supply rules, key definitions (e.g. what constitutes a supply of goods or services), exemptions, and VAT rates. The VAT provisions are mainly found in the Sections entitled Taxes sur le chiffre d’affaires in the CGI (notably Article 256 and onward for the scope of VAT, Article 262 and following for exemptions, etc.). [vatcalc.com]
• The Livre des Procédures Fiscales (LPF) – the Fiscal Procedures Code – provides rules on tax administration, including registration procedures, invoicing obligations, bookkeeping, auditing powers, assessment time limits, penalties etc.. For example, the 3-year statute of limitations and penalty regimes are found in the LPF (see Section 21 and 24 of this guide for specific rules). [vatcalc.com]
• The EU VAT Directive (Directive 2006/112/EC) – as France is an EU member, its VAT legislation is aligned with the EU VAT Directive. Key concepts such as what transactions are taxable, the right to deduct input VAT, and the list of permitted reduced rates/exemptions are derived from EU law. France is also subject to EU VAT Regulations (which have direct effect, e.g. the VAT Implementing Regulation (282/2011) that provides detailed interpretative rules). In cases of conflict, EU law has supremacy: for instance, France cannot deviate from the VAT Directive’s fundamental rules except with EU authorization (France does have a current EU authorization to mandate e-invoicing, as discussed below). [vatcalc.com]
• Related legislation: France occasionally uses Finance Acts (annual budget laws) to amend VAT rules, such as changing rates or introducing new compliance measures. Additionally, there are specific decrees and orders that implement the practical details of VAT (e.g. the 2022 decree on e-invoicing specifications). [vatcalc.com]
• Administrative guidance: The French tax authority (DGFiP) publishes official commentary and interpretations of tax law in the BOFiP (Bulletin Officiel des Finances Publiques – Impôts), an online repository of binding guidance. For example, the BOFiP contains detailed guidance on VAT rates, territoriality (including special rules for Corsica and overseas territories), invoicing, etc. Taxpayers can rely on BOFiP guidance, and it is regularly updated with changes in law.
• Courts: The application of VAT law is also shaped by French court decisions and the Court of Justice of the EU (CJEU) case law, which can clarify ambiguous points in legislation. Notably, the CJEU’s rulings are directly applicable in France and have prompted changes in French VAT practices (for instance, on topics like VAT grouping and complex supplies).

11. Tax Authorities

12. Scope of VAT

• Supply of goods or services in France: All supplies of goods and services by a taxable person (business acting in the course of business) are subject to French VAT if the place of supply is France. Determining the place of supply follows EU-wide rules: [tra.org]
  • Goods: The sale of goods is usually taxed in France if the goods are located in France at the time of sale or delivery to the customer. For example, over-the-counter sales in France or domestic shipments are French taxable supplies. Special place-of-supply rules apply to determine where cross-border sales are taxed (e.g. intra-EU distance sales to French consumers become taxable in France if thresholds/OSS conditions are met). [vatcalc.com]
  • Services: A service is taxable in France if the rules on place of supply designate France. For B2B services, the general rule is taxation where the customer is established, meaning services supplied to a French business by a foreign supplier are deemed supplied in France (but taxation is via reverse charge – see Section 15). For B2C services, many services (e.g. those provided to private individuals) are taxed where the supplier is established. However, important exceptions exist: for instance, digital services to EU consumers are taxed where the customer resides (hence non-French providers charge French VAT via the OSS scheme), and certain services connected to French immovable property (like construction work on French land, or hotel accommodations) are taxed in France regardless of the customer’s location. France also applies use-and-enjoyment rules for some services (see Section 15), which bring certain otherwise out-of-scope services into the French VAT net if they are effectively used in France. [tra.org]
• Imports of goods: The importation of goods into France from outside the EU is a taxable event for French VAT purposes. When goods clear French customs, import VAT is due (though as discussed later, France now generally requires this to be settled via the VAT return rather than as a cash payment at the border – see Import VAT deferment in Section 15). The imported goods, once in free circulation, can then move within the EU without further VAT until sold. [vatcalc.com]
• Intra-Community acquisitions: The purchase of goods by a French business from a supplier in another EU Member State is called an intra-Community acquisition and is taxed in France via the reverse charge. In essence, a French VAT-registered buyer of goods from, say, Germany will self-account for French VAT on its VAT return (often taking a simultaneous credit if the acquisition is for taxable business use). Small unregistered French buyers have an annual threshold (currently €10,000) before such purchases trigger a need to register and pay VAT in France, as noted in Section 5. [vatcalc.com]
• Intra-Community distance sales to France: Sales of goods dispatched from another EU country to non-taxable French customers (typically online B2C sales) are taxed in France if the seller crosses the €10,000 pan-EU distance selling threshold or opts into OSS earlier. Under the current rules (post-2021 EU e-commerce VAT reforms), once that threshold is exceeded, the supplier must charge French VAT to its French customers – either by using the OSS or by registering in France (see Section 5 and 18 for details). [vatcalc.com]
• Reverse-charged services and other transactions: If a French business receives services from overseas, those services are taxed in France under the reverse-charge mechanism (the French recipient must account for French VAT on its VAT return). Common examples include consulting, advertising, royalties, etc., purchased by French companies from foreign providers. Additionally, certain domestic transactions designate the customer as liable for VAT (reverse charge) – for instance, supplies of goods or work in the construction sector by a subcontractor to a main contractor can fall under a domestic reverse charge to prevent fraud (see Section 15). These transactions are within the scope of VAT (they are taxable in France), even though the mechanism of collection is via the purchaser’s VAT return rather than the supplier charging VAT.

13. Time of Supply (Tax Point) Rules

• Supply of Goods (one-off sales): The tax point for a sale of goods is typically the moment of transfer of ownership or delivery of the goods to the customer, which in practice is when the goods are made available to the buyer. If an invoice is issued or payment received before the goods are delivered, that can also create an earlier tax point (for the amount invoiced/paid). For example, if goods are shipped on March 1 but an invoice was issued on Feb 25, the VAT becomes due in February (invoice date) for that amount. In the absence of advance invoicing, the delivery date is key. For continuous supplies of goods (e.g. gas or electricity supplied on a continuous basis), French law treats each billing period (at least monthly) as creating a tax point at the time of each periodic invoice or payment. [vatcalc.com]
• Supply of Services: For one-time services, the VAT becomes chargeable when the service is performed or completed. If services are performed over a period, the tax point is when the work is finished or when an invoice is issued. For continuous services (ongoing contracts without a clear end point, such as maintenance contracts or subscriptions), VAT is due at the end of each agreed billing period or upon payment – in other words, at least once a year a tax point must be recognized for ongoing services that span a long period. Interim invoices or payments can create corresponding tax points. [vatcalc.com]
• Imports of goods: The time of supply for imported goods is when the goods enter France’s customs territory and clear customs into free circulation. At that point, import VAT is due. If import VAT is accounted for via a deferred mechanism on a VAT return (see Section 15), the tax point is effectively the tax period when the import is declared for VAT (usually the customs declaration date). [vatcalc.com]
• Intra-EU acquisitions: For goods arriving from other EU countries, the chargeable event is typically when the goods arrive in France (or when an invoice is issued by the supplier, if earlier, per EU rules). French purchasers doing intra-Community acquisitions must usually account for VAT in the period when the invoice is dated or the 15th of the month following the acquisition, whichever comes first (following EU Directive rules).
• Goods supplied on approval or consignment: If goods are sent to a customer in France on a sale or return basis (approval), the VAT becomes due when the customer formally accepts the goods (transfer of ownership) or when the approval period expires and ownership changes, rather than at the moment of physical delivery. This means that if goods are delivered but subject to a right of return (for example, consignment stock or goods on trial), the VAT tax point is delayed until the customer’s acceptance/purchase is confirmed (or the return period lapses). For consignment stock (unsold goods held at the customer’s premises or a warehouse pending future sale), the tax point arises when the stock is removed from consignment for use by the customer. Under the call-off stock simplification (see Section 15), the transfer of goods into France for a known future acquirer does not itself create a tax point or require VAT at the time of transfer, provided the goods are called off by the customer within the agreed time frame (under EU law, generally within 12 months). If the goods are not taken by the customer in time, a supply is deemed to occur, creating a tax point at that moment. [vatcalc.com], [vatcalc.com] [vatcalc.com]
• Exceptional cases: In certain cases, special timing rules apply. For example, in the case of reverse-charged services received from abroad, French VAT is due when the service is performed (or when the invoice is issued) – essentially at the same time the service would be taxed if supplied domestically. If a customer pays installments or receives continuous services, each payment can trigger a tax point for that portion. [vatcalc.com]

14. VAT Invoicing Requirements

• The date of issue of the invoice, and a unique sequential invoice number that identifies the invoice (often prefixed with a code identifying the series).
• Seller’s details: the full name (or business name) and address of the supplier, and the supplier’s French VAT identification number (TVA number). If the supplier is a foreign company with a French fiscal representative, the rep’s name and VAT number should also appear. [vatcalc.com]
• Customer’s details: the name (or business name) and address of the customer. If the customer is a business registered for VAT in France or another EU country, their VAT number should also be included. For a B2B intra-EU supply, the customer’s EU VAT number is mandatory to support zero-rating the sale. For domestic B2C sales (to a private individual), the customer’s details may be omitted only on simplified receipts (see Simplified invoices below).
• Description of goods/services: a clear description of what is being supplied, including the nature of the goods or services, and the quantity or extent of the goods/services supplied. The date of the sale or service (if different from the invoice date) should also be indicated. [vatcalc.com]
• Amounts and VAT breakdown: the taxable amount (net before VAT) for each rate or category of goods/services, the unit price (if applicable), any discounts or rebates (if not included in the unit price), the VAT rate applied, and the amount of VAT in euros for each rate. The invoice should clearly distinguish the net amount, the VAT amount, and the gross total (amount “TTC”). If multiple VAT rates apply to different items, each must be detailed separately. If an exemption or zero rate is applied, the invoice should mention the applicable article of law or directive justifying no VAT (e.g., “Exonération de TVA, article du CGI” for a local exemption, or “Exonération TVA, article 262 ter I du CGI” for an intra-Community supply). [vatcalc.com]
• Special mentions: Certain transactions require additional references – for instance, the phrase “Autoliquidation” for domestic reverse-charge supplies (like certain construction services) to indicate the customer must account for VAT. If a fiscal representative is used, the rep’s name, address, and VAT number must be stated on the invoice. For margin scheme sales (e.g., second-hand goods, art), a mention that VAT is applied to the margin should appear (and no VAT shown to the customer). In general, any information necessary to justify a special VAT treatment must be included. [eurotax.fr] [vatcalc.com]

• France is implementing a mandatory electronic invoicing (e-invoicing) and electronic reporting (e-reporting) system in a phased manner. The reform (initially slated for 2024 but delayed by new legislation) will require that B2B invoices between French businesses be issued in electronic form through either a government-approved platform or the official public invoicing portal. Simultaneously, data on B2C sales and cross-border transactions must be reported in near-real-time to the tax authorities (e-reporting). As of the updated schedule, large and medium-sized companies will have to comply by September 1, 2026, and small and mid-size enterprises (SMEs) and micro-enterprises by September 1, 2027. All French VAT-registered businesses, regardless of size, will be required to accept electronic invoices from their suppliers by September 2026. This system is meant to reduce fraud and simplify VAT reporting by eventually allowing pre-filled VAT returns based on invoice data (one of the future goals of the reform). [ey.com]
• Digital signatures: Under current rules, a digital (electronic) signature is one way to ensure an e-invoice’s authenticity, but it is not mandatory if other compliant methods are used. Once the B2B e-invoicing mandate is in effect, invoices will be exchanged through certified platforms, and the French government’s portal will implicitly ensure authenticity and integrity. Until then, businesses using electronic invoicing on a voluntary basis should ensure either the use of electronic signatures or maintain a documented audit trail of invoice creation and approval per French standards (often following guidance in the BOFiP).

15. Compliance and Deductions

• Expenses for personal or non-business use: Input VAT cannot be deducted on goods or services that are not used for business purposes or are used more than 90% for private/non-business purposes. For example, VAT on goods or services where business use is incidental (less than 10%) is not deductible. [vatcalc.com]
• Employee-related expenses: VAT on employee accommodation (housing) and certain employee travel expenses is non-deductible (with limited exceptions, e.g. hotel costs may be deductible if incurred for business travel by employees, but not if relating to lodging made available to employees). Staff meals and entertainment: VAT on expenses for business entertainment (client meals, hospitality, gifts over certain low-value thresholds) is generally not recoverable. In France, business gifts over €73 (per recipient per year) have non-deductible VAT beyond that small amount. Basic food and drink for employees (like coffee or snacks) might also be blocked from deduction under “management expenses.” [vatcalc.com], [vatcalc.com] [vatcalc.com]
• Passenger vehicles and transport: VAT on the purchase, lease, or operation of cars available for personal use by employees or executives is generally not deductible in France, except for certain categories (e.g., utility vehicles or vehicles demonstrably used exclusively for business purposes). Likewise, VAT on related expenses (fuel, repairs) for passenger cars is mostly non-recoverable except for certain environmentally friendly vehicles or specific uses. Similarly, VAT on employee travel (train/air tickets) is not deductible in many cases. [vatcalc.com]
• Costs related to exempt activities: If a business makes exempt supplies (without the right to deduct VAT), it generally must prorate its input VAT and can only recover the portion related to taxable or zero-rated activities. For instance, a bank providing exempt financial services would have only partial VAT recovery on its expenses, in proportion to any taxable activities it has. This is known as the partial exemption (pro-rata) calculation. Some specific exempt sectors like financial services also have special input tax blocking rules (e.g., VAT on certain brokerage or advisory services might be non-deductible even if the firm has mixed activities).
• Other blocked items: French law can designate specific items as non-deductible to prevent abuse. For example, VAT on tobacco products and on personal telephone services (mobile phones for staff personal use) is not deductible. France also disallows VAT deduction on fuel for passenger cars, except for 50% of the VAT on diesel and 80% of the VAT on gasoline (recently phased in) when used in company cars – a rule aimed at promoting environmental objectives.

• B2B services from abroad: Under the EU “general rule,” services provided by a non-French supplier to a VAT-registered customer in France are subject to French VAT under the reverse-charge mechanism. The foreign supplier does not charge VAT; instead, the French business customer must self-assess the VAT on its VAT return (and can simultaneously deduct it, if entitled). This covers most types of B2B services (consulting, legal, advertising, marketing, digital services, etc.). It also means foreign service providers usually do not need to register in France for B2B services. France extends this principle to non-established suppliers of certain goods: for example, a foreign company supplying goods installed or assembled in France to a French VAT-registered customer can be covered by a reverse charge (the French customer would owe the VAT) instead of forcing the supplier to register. Likewise, sales of gas, electricity, heat or cooling energy are subject to reverse charge when supplied to taxable dealers, even among French-established parties. [vatcalc.com] [vatcalc.com], [vatcalc.com]
• Domestic reverse charges (special sectors): French legislation specifies a number of cases where the VAT is not charged by the supplier even for domestic transactions, and instead the French business customer must account for it. Notable examples:
  • Subcontracted construction work: For certain building and construction services, if a subcontractor (whether French or foreign) provides services to a principal contractor who is VAT-registered in France, the invoice is issued with the statement “auto-liquidation” and no VAT – the principal is required to self-account for the VAT. This domestic reverse charge in the construction sector is aimed at combating fraud by subcontractors.
  • Sales of specific goods: France applies a reverse charge to domestic supplies of waste and scrap materials, used materials, and recoverable materials (e.g. scrap metal sales) to businesses, in line with EU rules to prevent fraud in these industries. [vatcalc.com]
  • Sales of certain agricultural products and investment gold: The supply of unprocessed gold (investment gold) is subject to a reverse charge in France (the buyer accounts for VAT) to deter fraud. In some cases, supplies of greenhouse gases (emission allowances) and carbon credit trading are also under reverse charge. [vatcalc.com]
  • Other domestic reverse charges: Telecommunication services provided by a French taxable person to another taxable person may be under reverse charge, and certain transfers of gas/electricity certificates or similar rights also use reverse charge where both supplier and customer are established in France. [vatcalc.com]

16. VAT Recovery for Non-Residents (8th & 13th Directive Refunds)

Foreign businesses that are not VAT-registered in France can still recover French VAT incurred on purchases, under two main regimes:

• EU businesses (8th Directive refunds): If a company is established in another EU Member State and incurs French VAT on local purchases (with no other obligation to register in France), it can use the EU refund procedure (Directive 2008/9/EC, formerly 8th Directive). The company must submit an electronic VAT refund application by September 30 of the year following the year in which the VAT was incurred. This application is filed through the tax authority’s online portal in the home country (in the business’s own EU member state), which then forwards the claim to the French tax authorities. Key conditions for EU claimants include not having a residence or fixed establishment in France and not performing any taxable supplies in France (aside from certain zero-rated transport services) during the refund period. The claim can cover a calendar quarter or the whole calendar year (or shorter periods in some cases); if covering a quarter, the minimum claim amount is €400, and for a full year or remaining part of a year, €50. The French authorities typically have 4 months (extendable to 8 months in certain cases) to process the claim and must pay approved refunds with interest if they are late. Importantly, EU claimants do not require a fiscal representative for these refunds, and France does not demand an “audit certificate” from an auditor (some countries do for certain claims, but France does not). [eurotax.fr], [eurotax.fr] [eurotax.fr]
• Non-EU businesses (13th Directive refunds): If a company is established outside the EU and incurs French VAT (and has no requirement to register in France), it can seek a refund under the 13th Directive (EU Directive 86/560/EEC). As of recent French policy updates, France allows refunds to non-EU companies from all countries (no reciprocity requirement) – this means businesses from any non-EU country can apply for a VAT refund from France. The refund application must be sent directly to the French tax authorities (in practice, via the dedicated French VAT refund online portal introduced in 2021) and must be submitted by June 30 of the year following the year of the expenses. The claim can cover a minimum of 3 consecutive months (or a shorter period if it’s the remainder of the calendar year); again a €400 minimum applies (or €50 if the claim covers a full year or the last part of the year). Crucially, non-EU claimants must appoint a fiscal representative in France to handle the refund claim and compliance. The supporting documentation (original invoices, etc.) typically needs to be submitted (often in electronic form, e.g. scanned and uploaded) and a French translation of certain documents might be required. The French tax authority will refund the VAT directly to the claimant’s bank account if the claim is approved. [vatcalc.com] [eurotax.fr], [eurotax.fr] [eurotax.fr]

17. VAT on Digital Services

• Definition: Digital (electronically supplied) services include things like downloads of software, music, e-books, streaming services, online gaming, SaaS offerings, and other services delivered over the internet with minimal human intervention. In French legislation, these are often termed “services fournis par voie électronique.”
• B2C services – OSS (formerly MOSS): A foreign business (whether EU or non-EU) providing digital services to consumers in France is required to charge French VAT from the first sale (no local threshold) unless it opts to use a special scheme. To simplify compliance, France (like all EU countries) participates in the One-Stop Shop (OSS) system for digital services. Under the OSS (which replaced the older “Mini One Stop Shop (MOSS)” as of July 2021), a business can register in a single EU country – for EU-based businesses, in their home country; for non-EU businesses, in a country of their choosing – and report all EU digital service sales on one quarterly OSS return. The OSS return will allocate the collected French VAT to France’s tax authority. This means, for example, a US software company selling mobile apps to French consumers can avoid a direct French VAT registration by registering for the Non-Union OSS in one EU state and charging French VAT via that return. The OSS scheme covers B2C telecommunications, broadcasting, and electronically supplied services. [vatcalc.com], [vatcalc.com] [vatcalc.com]
• B2B digital services: When digital services are supplied to French businesses (B2B), the general B2B rule applies – the service is deemed supplied where the business customer is established. Thus, a non-French provider does not charge French VAT to a French business customer; instead, the French customer must apply the reverse charge and account for French VAT itself (with corresponding input VAT deduction if applicable). The OSS scheme is only for B2C sales, not B2B.
• French domestic digital services: For French-based providers of digital services, the normal rules apply. Sales to French consumers include VAT at the standard 20% (digital products like e-books and online newspapers benefit from the 5.5% reduced rate, since 2019, aligning them with the rate on physical books). Sales to consumers in other EU countries would require using the OSS (Union OSS) once above the €10,000 pan-EU threshold as described in Section 18, or otherwise registering in each relevant country. [eurotax.fr]
• Digital platforms (“marketplaces”): Starting in 2021, EU “deemed supplier” rules mean that online marketplaces facilitating certain cross-border digital services or low-value goods deliveries to EU consumers may become responsible for collecting VAT. For example, if an online app store sells an app to a French consumer on behalf of a non-EU developer, the marketplace is deemed to supply the service and must charge French VAT via its OSS registration. These rules help capture VAT on digital economy transactions.

18. Distance Selling Rules

• Abolition of old thresholds: Prior to 2021, France (like other EU countries) had a high threshold (≈€35,000 per year from a given country) for distance sales of goods before requiring French VAT. This changed on July 1, 2021 when the EU introduced a new common threshold of €10,000 for all B2C sales of goods and digital services across EU borders. Now, if an EU business’s total cross-border B2C sales exceed €10,000 in a year (and the previous year) across all EU countries, that business must charge VAT in the customer’s country from the first sale after the threshold is passed. In practice, non-French EU businesses selling goods to French consumers will have to charge French VAT on those sales with no significant threshold beyond €10,000 EU-wide (which is often quickly exceeded by active e-commerce sellers). [vatcalc.com] [vatcalc.com]
• One-Stop Shop (OSS) – distance selling: To simplify compliance, the One-Stop Shop (OSS) can be used for distance sales of goods within the EU. Rather than registering in every EU country where customers are located, an EU business can opt to handle French VAT on B2C goods sales via the OSS return filed in its home country. If using OSS, the business will charge French VAT to customers in France at the point of sale (e.g. 20% or appropriate reduced rate) and later remit that tax through the OSS system, which forwards the tax to France. OSS covers intra-EU distance sales of goods shipped from one EU country to consumers in another. OSS does not cover goods shipped from outside the EU (imports). [vatcalc.com]
• Imports and IOSS: For distance sales of goods imported by the seller from outside the EU to French consumers (for example, goods sent by a non-EU retailer via mail to buyers in France), France follows the EU-wide Import One-Stop Shop (IOSS) scheme for consignments valued up to €150. If the seller registers for IOSS (in any EU state), they can pre-collect French VAT on sales of low-value goods to France and simplify customs clearance (goods are then VAT-exempt on import because VAT was prepaid to the tax authority via IOSS). If IOSS is not used, normal import VAT and customs procedures apply – typically the buyer in France will have to pay French import VAT (and duties, if applicable) on delivery, or the seller might need to use a special arrangement like appointing a French customs agent and potentially registering for VAT to handle any DDP (Delivered Duty Paid) sales. Note that the €150 threshold aligns with EU customs duty relief; above €150, IOSS cannot be used and import VAT must be paid at the border (though the seller could still register in France to act as importer of record and recover input VAT on such imports). [vatcalc.com]
• Domestic distance sales: Where goods are sold online by a supplier within France to French customers (or via mail order), it’s simply a domestic sale subject to 20% or appropriate reduced VAT. There are no special distance selling rules for purely domestic transactions – the supplier charges VAT as usual and no additional thresholds apply.

19. Cash Accounting Scheme

20. VAT-Registered Cash Tills (POS Systems)

• Businesses must use either certified POS software or secure cash registers that comply with anti-fraud standards set by the law. They must be able to produce a certificate of compliance from an accredited certification body (such as NF525 certification from InfoCert/LNE in France) or an individual attestation from the software publisher, affirming the system’s compliance. [vatcalc.com]
• Originally, all businesses accepting cash or equivalent payments from customers were required to have compliant systems by 2018. Many software providers obtained the NF525 certification for their products. Businesses could use a self-declaration from software providers for a transitional period.
• Deadline extension: The requirement for third-party certified systems has been extended to 1 September 2026. Until then, existing self-certifications remain valid through 31 August 2026. Starting 1 September 2026, any cash register or POS system in use must either have been certified by an accredited body (InfoCert or LNE) or at least have the certification process underway (with a deadline of 31 Aug 2025 to initiate it). [vatcalc.com]
• Penalties: Non-compliance with the cash register requirements can lead to a fine of €7,500 per non-certified cash register if a business is found using non-compliant software and fails to produce a proper certification document upon inspection. Businesses are typically given 60 days to correct the situation (i.e., install compliant software) before another fine can be imposed. Given the significant penalties and the possibility of enhanced tax audits if issues are found, businesses in retail, hospitality, and other cash-intensive sectors should ensure their systems meet French requirements. [vatcalc.com]

21. Statute of Limitations

22. VAT Return Filing (Periods, Deadlines, Payments)

• Filing frequency: The default filing frequency in France is monthly. Businesses whose annual VAT payable is below a certain threshold may opt to file quarterly returns. Specifically, if a business’s total VAT due for the previous year was less than €4,000, it can shift to quarterly filing (otherwise, monthly is mandatory). There is also a very limited annual filing option for the smallest businesses: those under the simplified franchise (small business exemption) typically don’t file at all (as they don’t charge VAT), but those under the simplified taxation regime (régime simplifié) may file an annual summary return with advance quarterly payments. However, non-resident businesses (foreign companies registered for French VAT) are usually required to file monthly returns regardless of turnover – the quarterly or annual options are generally not available to them. [tra.org] [vatcalc.com]
• Filing method: France requires electronic filing and payment of VAT. Businesses use the Téléprocédure “TéléTVA” system or its successor (often accessed via the impots.gouv.fr portal or through approved EDI/API channels) to submit returns and arrange payment. Paper filings are not accepted for VAT. Many businesses file through a simplified online interface, whereas high-volume filers or fiscal representatives often use EDI transmissions. [vatcalc.com]
• Deadlines for filing and payment: The standard deadline for monthly or quarterly VAT returns in France is the 19th of the month following the end of the period (for example, a March return is due by April 19). However, when paying via automatic bank debit (which is required for French-established businesses), an additional few days are typically allowed. In practice, most French-established firms have until the 24th of the following month for the filing to be transmitted and the payment to be debited. For non-resident businesses, the timeline can be slightly shorter: often the return (and payment by bank transfer) is expected by the 19th or 20th of the following month if no French bank account is used. To summarize, the due date for residents is around the 24th (with direct debit) and for non-residents around the 19th–20th. If a due date falls on a weekend or public holiday, it generally shifts to the next business day. It’s crucial to observe these deadlines, as late filing or payment triggers automatic penalties (see Section 24). [eurotax.fr] [vatcalc.com], [eurotax.fr] [vatcalc.com]
• Payment methods: Payment of VAT is usually made via direct debit (automatic bank withdrawal) from a French bank account, especially for French-established businesses (this is part of the TéléTVA filing setup). Non-resident companies that do not have a French bank account may need to ensure payment by international bank transfer so that it is received by the deadline. In all cases, payment in euros is required. Overpayments (net VAT credits) can either be refunded or carried forward (see below). [vatcalc.com]
• Pre-filled returns: Currently, pre-filled VAT returns are not generally provided in France – taxpayers must complete the forms with their own sales and purchase data. However, with the upcoming e-invoicing/e-reporting mandate (Section 14), France aims to eventually leverage collected transaction data to pre-fill parts of the VAT return for taxpayers, especially for small businesses, to reduce errors and audit burden. As of 2026, this is still in development and not yet in effect.
• VAT credits and refunds: If a VAT return results in a credit (excess input VAT), the taxpayer has the right to request a refund under certain conditions. In France, a refund can be claimed on a monthly return if the credit is at least €760. If the credit is smaller, it is typically carried forward to the next period by default. However, any credit balance must be refunded at least once a year (so even small credits can be reclaimed at year-end or when filing the last return for the year). Refunds are issued by the tax authorities, usually via bank transfer, and the process generally takes a few weeks (though large refund claims may trigger an audit or a request for additional documentation before payment). For non-established businesses, France may require a French bank account or an EU IBAN for the payment of refunds, to ensure a smooth transfer. [vatcalc.com]
• Corrections of errors: If a mistake is discovered in a submitted VAT return, the taxpayer has a couple of options:
  • Submit an amended return: France allows filing a corrective VAT return (marked as such) to substitute the original filing. If the correction is made before the filing deadline, it’s just a matter of re-filing. If after the deadline, an amendment can still be filed; however, if the adjustment implies a significant increase in VAT due (above €4,000), the common practice is to file a new return for the period in question. Minor errors that result in additional VAT can sometimes be adjusted in a subsequent return (by adding or subtracting the difference in the current period) but formally an amended return is safer. [vatcalc.com]
  • Credit adjustment (déclaration de régularisation): For certain types of errors (especially if the correction is in the taxpayer’s favor or zero impact), the taxpayer may include an adjustment line in a later return, effectively correcting the earlier error without a separate filing. However, for material errors, the preferred approach is an amended return. France does not have an official “annual summary return” for regular taxpayers, so corrections need to be made to the relevant period’s declaration.
  If an error led to underpayment of VAT, the taxpayer should correct it as soon as possible. Late payment will incur interest and potentially reduced penalties if voluntarily disclosed. If an error led to overpayment, a claim for a refund of the overpaid VAT can be made within the 2-year period (see Section 21 regarding limitation periods).
• Non-resident filing specifics: Non-resident companies follow largely the same return format (CA3) as local companies. However, as noted, they generally must file monthly (no option for quarterly), and their filing deadline is typically a few days earlier (around the 19th or 20th) since they often cannot utilize the domestic direct-debit extension. Non-resident businesses are also handled by the special tax office (SIEE) which can be contacted for any filing issues. [eurotax.fr]

23. Other Filings (EC Sales List, Intrastat, etc.)

• European Sales List (ESL): Known in France as the “Déclaration d’échanges de biens” (DEB) for goods and “Déclaration Européenne de Services” (DES) for services, these are listings of cross-border EU transactions. For goods, France historically combined the ESL with Intrastat in a single return called the DEB. As of 2022, the system was reformed: if an enterprise exceeds €460,000 per year in intra-EU dispatches or arrivals of goods, it must file a monthly DEB by the 10th business day of the following month, detailing both the values of goods shipped to and received from other EU countries and providing partner VAT numbers for sales. If below the threshold, some information (like the value of goods) may still need to be reported for statistical purposes but with simplified requirements (no detailed commodity codes for lower volumes). For services, a separate monthly DES return is required to list B2B services supplied to other EU VAT-registered customers, to enable those customers to apply the reverse charge correctly. The DES is due by the 10th of the month following the month of supply. Failure to file these listings or inaccuracies in them can lead to penalties (e.g., fines of €750, increasing if not remedied, and €15 per omitted or wrong line item up to certain limits). [vatcalc.com] [eurotax.fr]
• Intrastat (trade statistics): The Intrastat data collection is largely integrated into the DEB for goods. For dispatches (exports to EU) and arrivals (imports from EU), details such as the nature of goods and their weight and value must be reported if thresholds are exceeded (the €460,000 annual threshold mentioned is for detailed data). Intrastat thresholds can change; businesses should check the current values each year. Note that Intrastat is purely statistical; however, in France, the DEB serves a dual function: Part A of the DEB (listing of inter-EU sales/purchases) is used for tax control (ESL), and Part B for statistics (Intrastat). Even if detailed Intrastat info isn’t required below threshold, the ESL part must still be submitted for any month with intra-EU sales. As of 2022, France has simplified the DEB by potentially not requiring separate detailed ESL if no Intrastat is due, but the obligation to report intra-EU operations remains. Given the complexity, many companies use freight forwarders or customs brokers to help with DEB/Intrastat filings. [vatcalc.com]
• Annual returns: Up until 2023, France had an additional requirement for an annual summary VAT return (CA12) for certain filers (particularly under the simplified regime). This annual return summarized the year’s VAT and sometimes acted to reconcile any interim payments (acompte) made. However, for regular monthly/quarterly filers under the standard regime, the periodic CA3 returns are final and no separate annual VAT return is typically required. Recent moves toward simplification have reduced the use of the CA12 except for those on the simplified regime who make advance payments and true up annually.
• SAF-T / FEC: While France does not require a periodic SAF-T (Standard Audit File for Tax) submission, it does require companies to produce an electronic accounting export file (FEC) during tax audits. The FEC must contain all the year’s accounting entries in a prescribed format (.xml or .txt based on French GAAP chart of accounts) and is akin to a SAF-T. This is not a filing per se, but a requirement if audited. France has not implemented a continuous transaction SAF-T reporting, instead moving toward the e-invoicing and e-reporting system described earlier which will provide tax authorities transaction data in real-time. [vatcalc.com]
• Other reporting: Specific businesses may have additional filings, such as a Tourism Tax (Taxe de séjour) report for hospitality businesses, or Excise declarations for alcohol/tobacco. Another notable requirement is for French companies to file a CbCR (Country-by-Country Report) if they are part of a multinational group over certain size (though this is not VAT-related).

24. Penalties and Interest

• Late filing of VAT returns: If a VAT return is filed after the due date, a penalty of 10% of the VAT due is typically applied. If the taxpayer fails to file and the tax authorities issue a formal notice to comply, more severe surcharges can apply: a 40% penalty if the return is filed over 30 days after the official notice deadline, and up to 80% if the failure to file was accompanied by evidence of intentional fraud or a hidden activity (e.g., willful tax evasion). Note that even if no VAT was due (e.g., a nil return), there can be a fixed fine for a late filing of around €150. [eurotax.fr]
• Late payment of VAT: If the VAT return is filed on time but payment is made late (or if an additional tax assessment is issued), a late payment penalty of 5% of the unpaid VAT is levied. In addition, interest on late payment is charged at a rate of 0.2% of the tax due per month (which is 2.4% per year) from the due date until payment. This interest (sometimes called intérêt de retard) is intended to compensate the State for the time value of money. Not paying electronically (when required to do so) can trigger an extra 0.2% penalty (minimum €60) as well. [eurotax.fr]
• Errors and underpayments: If a return is found to be inaccurate (understating VAT due), and the taxpayer did not correct it in time, a penalty of 10% of the understated amount generally applies even if there was no intent to defraud (this may be in addition to interest). If the understatement is due to bad faith or intentional fraud, the penalty can be increased to 40% or 80% depending on severity, similar to the late filing surcharges mentioned above. Incorrect invoicing (such as charging VAT when not applicable, or vice versa) can also lead to obligations to pay the undue VAT or lose the right to deduction, with possible penalties.
• Failure to issue compliant invoices: Each missing mandatory detail on an invoice (such as VAT number, proper description, etc.) can result in a fine of €15 per omission, capped at one-quarter of the invoice amount. Not issuing an invoice when required or issuing it late can trigger fines (typically a percentage of the transaction). Using a non-compliant cash register (as noted in Section 20) can lead to fines of €7,500 per device. [eurotax.fr] [vatcalc.com]
• Non-payment of VAT due to fraud: In cases of fraud (e.g., issuing fake invoices, deliberately not charging VAT when it was due, carousel fraud), in addition to the 80% penalty on the underpaid tax, offenders can face criminal charges. Tax fraud in France can result in substantial fines and, for individuals, even imprisonment in severe cases. Corporate officers may be held personally liable for fraudulent non-payment of VAT.
• Intrastat/ESL non-compliance: As noted, missing or incorrect DEB/DES filings can result in fines ranging from €750 up to €1,500 (and additional per-error fines for mistakes on reported data). [eurotax.fr]
• General tax audit cooperation: Failure to cooperate with a VAT audit (e.g., not providing the FEC electronic accounting file upon request) can result in lump-sum penalties and potentially the rejection of accounting records, which often leads to the tax authorities assessing tax based on their estimates.

25. Other Notable VAT Features

• Special territorial regimes (Corsica & Overseas territories): While the VAT law applies uniformly in metropolitan France, the island of Corsica and certain French overseas departments/territories have distinct VAT rules and rates. For example, Corsica enjoys special reduced VAT rates on particular products: certain goods and services in Corsica (like some agricultural products, certain petroleum products, and spectacles) have historically been taxed at reduced rates of 0.90%, 2.1%, or 10%, instead of the mainland rates. Meanwhile, Guadeloupe, Martinique, and Réunion apply French VAT but at rates of 8.5%, 2.1%, and 1.05% (instead of 20%, 5.5%, 2.1% respectively) for historical and economic reasons. French Guiana and Mayotte are outside the EU VAT territory altogether – supplies there are not subject to French TVA but may be subject to local taxes (for instance, French Guiana uses an octroi de mer, a local import tax, instead of VAT). Businesses trading with these regions need to be aware that sending goods from mainland France to, say, Guadeloupe is treated like an export (zero-rated), and bringing goods from those territories into mainland France is treated like an import (subject to VAT and customs), due to their special status.
• Tourism Retail Export Scheme (VAT Refund for visitors): France participates in a scheme allowing non-EU travelers to get a refund of the French VAT on goods purchased in France and exported in personal luggage. Tourists who reside outside the EU and spend at least €100.01 in a store can request a tax refund form (VAT refund cheque) from the retailer. Upon leaving the EU (e.g., at the airport), they must have the forms validated (often electronically via PABLO kiosks in French airports) by Customs. The retailer (or a refund agent) then refunds the VAT to the traveler. This scheme, known as “détaxe”, boosts retail sales by effectively making purchases tax-free for non-EU visitors. Retailers must be part of the program and issue the proper documentation; failure to do so means VAT must be remitted and cannot be refunded to the customer.
• VAT and cross-border triangulation: Under EU simplification for chain transactions, if a French business is the intermediary in a triangular transaction (A—>B—>C in three different EU countries), France allows a triangulation simplification where the intermediate French company (B) does not need to register in the customer’s country C – instead the VAT is accounted for by C under the reverse charge. To use this, the French company must be an EU VAT-registered business not established in C, and it must ensure its supplier (A) has transported goods from A’s country directly to C. The French company then issues an invoice to the customer (C) with the remark “TVA – Autoliquidation, art. 141, Dir. 2006/112/CE,” indicating the customer will reverse-charge the VAT. This avoids double taxation and multiple VAT registrations in a chain of shipments.
• Special schemes: France implements all the standard EU VAT special schemes. For example, the Margin Scheme applies to second-hand goods, artwork, antiques, and collector’s items – under this scheme, VAT is calculated only on the dealer’s margin (profit) rather than the full sale price (with no VAT charged on the invoice). This scheme is used by businesses like used car dealers and art galleries. Another special scheme is the Tour Operators Margin Scheme (TOMS) applicable to travel agencies: travel services sold as packages that include international components are taxed on the agency’s margin, not the full value, with no input VAT recoverable on the travel inputs. France also has agricultural flat-rate schemes and other lesser-used regimes, but these are relevant only to specific sectors.
• Continuous efforts against VAT fraud: France is active in combating VAT fraud. In addition to the e-invoicing and certified POS requirements discussed earlier, France participates in EU-wide initiatives like the VAT “EUROFISC” network for information exchange and has implemented domestic measures such as requiring customers to verify that foreign service providers have a valid EU VAT number for certain transactions (or else the customer can be held liable for VAT). Furthermore, France has specific anti-fraud penalties, such as fines for failure to cooperate with electronic audit requirements, and can impose personal liability on company directors for unpaid VAT in cases of fraud. All these measures form part of the “Loi Anti-Fraude TVA” and related legislation aimed at protecting public revenues.